Online shopping store LAZADA gets $40M investment from AB Kinnevik

Southeast Asia’s online department store LAZADA on Tuesday said AB Kinnevik has invested north of $40 million in its German holding company following a similar investment by J.P. Morgan Asset Management.

 

The investment will fund LAZADA's product and market diversification, said regional CEO Maximilian Bittner. The company has added fashion merchandise to its lineup, which includes consumer electronics, household goods, toys and sports equipment. 

 

“In addition to capital, [Kinnevik] will provide us with invaluable strategic insight (into) operating in such markets,” Bittner added.

 

 “We are delighted to invest in LAZADA which has obtained a market leading position in a very short time,” said Kinnevik investment head Henrik Persson. “The company is perfectly positioned to become the major e-commerce player in this region which counts more than 600 million inhabitants.”

 

LAZADA has operations in Indonesia, Malaysia, Philippines, Thailand, and Vietnam. 

 

Founded in 1936, Kinnevik works to increase shareholder value, primarily through net asset value growth, according to the LAZADA, noting its new investor has exposures in telecom and services, online, media, microfinance, paper and packaging, agriculture and renewable energy companies.

 

It claims a long history of investing in emerging markets and plays an active role on the boards of its holdings.

 

Kinnevik class A and B shares are listed on the NASDAQ OMX Stockholm's list for large cap companies, within the financial and real estate sector. — Edgardo Tugade/VS, GMA News