Alibaba buys Rocket-backed South Asia e-commerce business

The size of the transaction was not disclosed. In 2015, UK development finance institution CDC Group committed EUR20 million ($22 million) to Daraz as part of a EUR50 million round that also included Rocket’s Asia Pacific Internet Group (APACIG). A year earlier, the company received EUR10 million in initial funding and joined the APACIG, which is part-owned by Qatar-based Ooredoo.

Daraz was launched in Pakistan in 2012 as an online fashion business, before becoming a general marketplace offering products such as electronics and home appliances as well as fashion. By the time CDC invested, the company had expanded into Bangladesh and Myanmar. It was attracting six million visitors and generating net merchandise value (NMV) of EUR1.5 million each month.

Now Daraz operates in Sri Lanka and Nepal as well. The five markets have a combined population of over 460 million, 60% of which are under the age of 35, according to a statement.

It represents another opportunity for Alibaba to extend its footprint beyond China into areas that are expected to see significant e-commerce growth. The company took a controlling stake in Southeast Asia-focused Lazada, another Rocket investee, in 2016. It invested another $2 billion earlier this year, taking the total commitment to $4 billion.

Increased Chinese investment is said to be one of the main growth drivers for India's neighboring countries. Although largely associated with the One Belt One Road infrastructure agenda, this activity includes substantial commitments in consumer and technology sectors. 

 

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• Topics
• South Asia
• Technology
• Consumer
• Trade sale
• Greater China
• Pakistan
• Bangladesh
• Myanmar
• TMT
• Rocket Internet
• CDC Group
• Alibaba Group