Earlier in September, we wrote that Rocket Internet’s e-commerce service Lazada has just received a huge investment round by JP Morgan, which was rumored to be in the hundreds of millions of dollars. Now the startup has had more money pouring into the company, with Swedish investment firm Kinnevik injecting US$ 40 million in fresh funding.
It can be noted that Kinnevik took a 25% stake in Rocket in the first quarter of 2012. The new investment round by Kinnevik is expected to help Lazada expand its product offerings and expand its reach further. TechCrunch notes that what’s interesting with this fresh capital infusion is that Rocket has actually placed an exact “price tag” on Lazada.
Read on for the full press release.
Singapore, 12th November 2012 – Following the announcement of investments in the third quarter results statement of Investment AB Kinnevik (“Kinnevik”), LAZADA, the leading online department store in Southeast Asia, can confirm that Kinnevik has invested north of USD40 million in its German holding company. Together with the recently announced investment by J.P. Morgan Asset Management this provides LAZADA with an exceptionally well-funded balance sheet to continue its fast growth in Southeast Asia.
The investment will allow LAZADA, which has quickly established itself as the preferred online retailer in the region, to continue building out its product offering and expand its reach. “By focusing on providing superior service to our customers we have grown into a trusted household brand and to broaden our assortment is a natural next step for us” Maximilian Bittner, Regional CEO, said. LAZADA recently added fashion to its extensive product offering, which includes a range of products from consumer electronics to household goods, toys and sports equipment.
“Kinnevik has a proven track-record of investing in emerging markets and we are very excited to have such a knowledgeable and experienced investor on board. In addition to capital they will provide us with invaluable strategic insight of operating in such markets. It is also a strong testament to what we have accomplished so far and verifies that we are on the right track to achieve our aggressive strategic goals” Mr. Bittner added.
“We are delighted to invest in LAZADA which has obtained a market leading position in a very short time” Henrik Persson, Head of Investments at Kinnevik commented. “The company is perfectly positioned to become the major eCommerce player in this region which counts more than 600 million inhabitants”.
About LAZADA (lazada.co.id, lazada.com.my, lazada.com.ph, lazada.co.th, lazada.vn)
LAZADA is Southeast Asia’s fastest growing online department store, with operations in Indonesia, Malaysia, Philippines, Thailand and Vietnam. LAZADA is pioneering eCommerce across some of the fastest growing countries in the world by offering a fast, secure and convenient online shopping experience with a broad product offering in categories ranging from consumer electronics to household goods, toys and sports equipment. LAZADA is always striving to offer its customers the best possible offering – including multiple payment options, free returns and extensive customer service and warranty commitments.
Kinnevik was founded in 1936 and thus embodies seventy-five years of entrepreneurship under the same group of principal owners. Kinnevik’s objective is to increase shareholder value, primarily through net asset value growth. The company’s holdings of growth companies are focused around seven comprehensive business sectors; Telecom & Services, Online, Media, Micro financing, Paper & Packaging, Agriculture and Renewable energy. Kinnevik has a long history of investing in emerging markets which has resulted in a considerable exposure to consumer sectors in these markets. Kinnevik plays an active role on the Boards of its holdings.
The Kinnevik’s class A and class B shares are listed on the NASDAQ OMX Stockholm’s list for large cap companies, within the financial and real estate sector. The ticker codes are KINV A and KINV B.