Tesco has led a $250 million funding round into Rocket Internet-backed Lazada, Southeast Asia’s largest online shopping mall.
Access Industries, Investment AB Kinnevik and Verlinvest also participated in the round into Southeast Asia’s largest online shopping mall, with operations in Indonesia, Malaysia, Philippines, Thailand and Vietnam.
Though TechMoran has not established how much stake UK’s retailer Tesco has acquired in exchange, Bloomberg is reporting that the giant retailer will own just a minority stake in the Rocket Internet-backed company. Tesco is starting close cooperation with the firm’s and says the synergies of this partnership will span across customer analytics, private label development and supply chain management but there is no doubt the firm aims to shift its businesses online with time and is working on being a giant online grocery merchant.
According to Robin Terrell, Group Multichannel Director of Tesco in a statement, “This investment in South East Asia’s largest e-commerce retailer continues our strategy of developing leading multichannel businesses in core growth markets.”
With operations in five markets in just 18 months and a door to South East Asia’s 600 million population and growth of smartphone technology. Lazada is a great place to start.
Lazada has a great long-term strategy, it has opened up its platform with great success to third party merchants to increase assortment and allowing both large and small suppliers take advantage of Lazada’s traffic volumes, continued building its category mix by expanding into fashion, and developed an affiliate program that will help the region’s broader web community to flourish by providing web portal and blog owners an opportunity to monetize their website.