Online Retailer Lazada Raises $100 Million
Lazada is a Southeastern based online retailer that has raised $100 million from several investors. Lazada was founded by Rocket Internet. The funding was provided by existing investors Holtzbrinck Ventures, Kinnevik Investment AB, Summit Partners, and Tengelmann Group. New investor, Verlinvest, also participated in this round. Verlinvest is a family-run investment holding company. This is Lazada’s largest round of funding thus far.
Lazada has operations in Malaysia, the Phillippines, Vietnam, and Thailand. “We see the same positive trends across the region,” stated Lazada CEO Maximilian Bittner. “What a country like Vietnam or Indonesia may not have in GDP they make up for in enthusiasm for online.”
Rocket Internet has launched several e-commerce companies in the last several years including Zando (Africa), Jumia (Africa), Zalando (Europe), Dafiti (Brazil), and Zalando (Russia). Lazada launched in early 2012 and they sell consumer electronics, toys, sports equipment, and household products.
The company is planning to use the funding to improve their supply chain. Lazada said that their total value of goods sold over a given period last month hit around “three digit millions” of euros.
Lazada competes against local online companies and Amazon.com. Amazon.com announced earlier this month that they are going to ship items from the U.S. to Singapore and India free. However, Lazada said that they are now able to ship around 90% of packages in the region on the same day and 85% of them in the metro area are delivered by the next day, according to Reuters.