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When 2024 started with news that Lazada was laying off up to 30% of its staff across different markets, it was hard to imagine that we’d be talking about a possible IPO just months later.
Aside from letting go of employees, the Alibaba-owned ecommerce platform has been losing market share to competitors like Shopee and TikTok Shop in recent years. So the tea leaves weren’t exactly pointing toward a market debut.
But Lazada’s surprise profit milestone in July has changed the equation. Check out today’s featured story for a look at how the firm’s “shrinking to profitability” strategy might just be paving the way for its frequently speculated IPO.
Today we look at:
- Lazada possibly approaching an IPO
- VinFast revving up EV deliveries
- Other newsy highlights such as Facebook co-founder Eduardo Saverin’s family donating to a school in Singapore and Philippine car-sharing platform Doon securing pre-seed funding.
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Lazada looking toward IPO?
Image credit: Timmy Loen
Lazada may no longer be leading any Southeast Asian market in gross merchandise value, but the ecommerce firm created a buzz in July after recording its first monthly profit.
The milestone was a surprise for some industry watchers and could also indicate the Alibaba-backed firm is finally moving toward an IPO.
- Refocusing: The firm has suffered a declining market presence in recent years, losing to formidable rivals Shopee and TikTok Shop. Moreover, it seems to have been “shrinking to profitability,” according to Simon Torring, co-founder of market insights firm Cube Asia. Lazada itself says it’s not focusing on “short-term metrics” and is instead keying in on long-term measures such as customer satisfaction and conversion rates.
- A matter of choice: Lazada recently launched a new offering in Southeast Asia called Choice, which is the firm’s attempt to emulate low-cost ecommerce platforms like Temu and Shein by working directly with manufacturers and subsidizing them to cut prices. Jiang Fan, CEO of Alibaba International Digital Commerce, says the parent company will invest heavily in Choice. Alibaba poured US$1.8 billion into Lazada in 2023 alone.
- Step one: Angus Mackintosh, founder of market insights firm CrossASEAN research, tells Tech in Asia that reaching profitability may indeed make Lazada more enticing to investors. However, he cautions that the firm will need to show this profit is sustainable if its IPO dreams are to be fulfilled.
Read more: From layoffs to profit: Is Lazada finally ready for an IPO?
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