Welcome to The Checkout! Delivered every Thursday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and trends in ecommerce. If you’re not a subscriber, get access by registering here.
Hi there,
Sometimes the best way to let something grow is to let it go.
When Alibaba bought Lazada in 2016, expectations were sky-high. The Chinese ecommerce giant injected about US$4.4 billion into Lazada between 2018 and 2020. At the time, Lazada was poised to dominate Southeast Asia’s ecommerce scene.
But things didn’t pan out that way – Shopee’s early days coincided with a period of turmoil at Lazada, marred by culture conflicts between headquarters and local teams, as well as frequent leadership changes.
However, recent developments suggest Alibaba is no longer looking to tighten its grip on Lazada. The Chinese group is now working on potentially spinning off its Southeast Asian ecommerce arm through an IPO, Bloomberg reported.
For Alibaba, intensifying regulatory pressure at home and weaker consumer spending have spurred the need to expand in overseas markets. The growth runway is still pretty long in Southeast Asia, where online shopping could generate US$234 billion in GMV by 2025.
For this week’s Big Story, I write about why all signs point toward an IPO for Lazada. It’s even more timely now that competitor Shopee is stretching thin in new markets and a public listing could give Lazada much-needed ammunition.
— Huong
THE BIG STORY
Why Alibaba should spin off Lazada
Image credit: Timmy Loen
As Alibaba faces challenges in its home court, a Lazada IPO could unlock massive runway growth for its ecommerce ambitions in Southeast Asia.
THE HOT TAKE
Behind Shopee’s quick exit from France
Here’s what happened:
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
