China Alibaba Group acquires entire shares of Daraz. Alibaba, Chinese internet giant has acquired Daraz in an unrevealed deal, in order to expand its e-commerce domain in South Asia.
Daraz, an online shopping site which was founded in 2012 by Rocket Internet and today it operates in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal.
In a statement by Rocket it is declared that Alibaba has acquired the entire business of Daraz. Moreover, the unit will continue to operate with the same brand following the sale to Alibaba.
Without disclosing financial details of the transaction, Rocket Internet said on Tuesday that Alibaba Group has bought the entire share capital of Rocket Internet’s Daraz Group.
Alibaba CEO Daniel Zhang said,
“We are excited for Daraz to become a part of the Alibaba ecosystem. Together with Daraz, we can now empower entrepreneurs to better serve consumers in the region through our technology and expertise.”
It is important to mention here Daraz has with 2 million products available to its 5 million customers. Furthermore, there are 30,000 sellers and 500 brands on its platform.
It product offerings includes consumer electronics, household goods, beauty, fashion, sports equipment as well as groceries. With its multiple payment options, users prefer cash-on-delivery mode.
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According to Daraz, its acquisition by Alibaba would facilitate further growth in its key markets, home to 460 million people and 60% of them under the age of 35.
“With hard work and dedication, we have started the e-commerce journey in our markets, but we have still only scratched the surface of the potential,” states by Daraz Co-CEO Bjarke Mikkelsen.
Not to mention, it’s the second time that Alibaba has made a deal and bought a Rocket company, as two years ago Lazada (well-known Southeast Asian online shopping platform) was the first acquisition by Alibaba in Southeast Asia.
“Daraz will be able to leverage Alibaba’s leadership and experience in technology, online commerce, mobile payment and logistics to drive further growth in the five South Asian markets that have a combined population of over 460 million, 60% of which are under the age of 35,” said the statement.
It is surely an improved step in the expansion plan of Jack Ma which is set out for over $330-billion economy with a young population and middle-class market.
According to Chief Executive Officer (CEO) Alibaba Group, Daniel Zhang the latest acquisition will allow entrepreneurs to provide better facilities to consumers in the region.
