Alibaba Will Invest In Indonesia'S Largest Electricity Supplier Group?

Market rumors say Alibaba Group Holding Ltd. (NYSE:BABA) Alibaba will participate in Indonesia's largest e-commerce platform

The latest round of financing has accelerated the layout of the Southeast Asian market.

According to the world clothing and shoe net, Alibaba has just added $1 billion in investment to Lazada Group SA SA, a major supplier of electricity in Southeast Asia in June, raising its shareholding ratio to 83%.

Alibaba's first investment in Lazada Group SA was in April 2016, when China's largest electricity supplier group also spent $1 billion, but it already had more than half of Lazada Group SA's stake.

The PT Tokopedia Tokopedia, jointly founded by William Tanuwijaya and Leontinus Alpha Edison in 2009, has held 7 rounds of financing so far.

According to Crunchbase data, the total amount of financing amounted to 250 million US dollars. In 2014, the 100 million dollar financing of SoftBank Group Corp. (9984.T) Softbank group and Sequoia Capital led to a domestic record in Indonesia. In 2016, the electricity provider raised another $147 million in the latest round of financing which had not been announced.

Bloomberg sources say Alibaba may invest $500 million in PT Tokopedia, and DealstreetAsia quoted news that SoftBank Group Corp. Softbank and Sequoia Capital will participate in the current round of financing, and will replace the potential investments of JD.com Inc. (NASDAQ:JD) Jingdong, which are Alibaba and Jingdong investors respectively.

In May of this year, the insider broke out.

In the initial stage of investment negotiations with PT Tokopedia, the Jingdong could inject hundreds of millions of dollars into the value of PT Tokopedia Tokopedia to more than $1 billion, making it the second unicorn in Indonesia.

The industry then predicted that Jingdong would take advantage of PT Tokopedia as the starting point for Southeast Asian businesses and not allow Alibaba to take the lead in the market with Lazada Group SA in the 190 million middle class (Nelson estimated to reach 400 million in 2020).

Since joining the Alibaba, Lazada Group SA has rapidly expanded its business in the past year, for example, in Singapore, in cooperation with Netflix Inc. (NASDAQ:NFLX) Internet and Uber Technologies Inc..

The platform was built in Germany by Rocket Internet SE (RKET.DE) in 2011, while Tokopedia was more similar to Taobao's C2C mode.

At present, Amazon.com Inc. (NASDAQ:AMZN) Amazon hasn't invaded Southeast Asia yet, but Macquarie Research expects that the group will not ignore the market, and when it decides to March, it will inevitably lead to an integration tide.

In the face of the strong challenge of Amazon.com Inc., Amazon, India, the largest and third largest electricity suppliers in the world, Flipkart Online Services Pvt. Ltd. and Snapdeal (Jasper Infotech Pvt.) are seeking merger. Last year, Amazon has surpassed Flipkart to become the biggest supplier of electricity.

Indonesia is considered to be the hottest electricity supplier market in Asia besides China and India. Macquarie Research estimates that the size of India's electricity supplier market will increase to 65 billion US dollars from the current 8 billion US dollars in 2020.

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It has not only stepped up the opportunity to catch e-commerce, but has also deployed mobile payment networks locally. Ant Jin suit has established a joint venture with Emtek, Indonesia's media giant, to launch mobile payment products and other financial services locally.

More attention should be paid to the world clothing shoes and hats net.