Kul Bhushan · · 1 min readAlibaba shelves talks for Lazada’s $1b pre-IPO round
Alibaba Group has shelved talks with investors to raise US$1 billion for Lazada before its IPO following a disagreement over the Southeast Asian firm’s valuation, Bloomberg reported, citing sources.
However, Alibaba hasn’t changed its plans to spin off Lazada as a separate company, with competition in the region continuing to heat up with the rise of Shopee and GoTo. The Chinese retail giant is also facing heat in its home market from rivals such as JD.com and Pinduoduo.
Alibaba may resume efforts to raise funds for Lazada in the future, the report added.
Last December, Lazada reported US$21 billion in gross merchandise value. Its user base also grew as annual active consumers rose 1.8x to 130 million in September 2021 from 73 million in March 2020.
See also: A closer look at the Lazada mafia
Editing by Collin Furtado and Lorenzo Kyle Subido
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