Chinese tech giant Alibaba breaks into Pakistani market by acquiring Daraz

[Devil Soul]

Chinese tech giant Alibaba breaks into Pakistani market by acquiring Daraz
Dawn.comMay 08, 2018
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China's biggest e-commerce company, Alibaba Group, broke into the Pakistani market on Tuesday by fully acquiring Daraz Group.

"With the acquisition, 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 a press release by Daraz.

Founded in Pakistan in 2012, Daraz has since expanded in Bangladesh, Myanmar, Sri Lanka and Nepal. It will continue to operate under the same brand, said the press release.

Hailing the move, Daraz Co-CEOs Bjarke Mikkelsen and Jonathan Doerr said that there is still a long way to go on the e-commerce journey. "We have still only scratched the surface of the potential," they said.

Daniel Zhang, CEO of Alibaba Group, said: "Together with Daraz, we can now empower entrepreneurs to better serve consumers in the region through our technology and expertise. In Daraz, we found a great team that espouses our values and believes that a technology-enabled commerce ecosystem will play a critical role in driving the long term economic development in South Asia."

The Alibaba group has been for some time trying to enter the Pakistani market. Last year, it signed a memorandum of understanding (MoU)with the Ministry of Commerce and had been in talks with Daraz since at least earlier this year.

 

[Asian.Century]

China's Alibaba Group acquires Daraz

KARACHI: Alibaba Group has bought the entire share capital of Rocket Internet’s Daraz Group, Rocket Internet said on Tuesday, without disclosing financial details of the transaction.

Daraz, founded in 2012, operates online marketplaces in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal. The unit will continue to operate under the same brand following the sale to Alibaba, Rocket said.

“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.




The acquisition comes months after Ant Financial, controlled by Alibaba Group co-founder Jack Ma, decided to buy a 45% stake in Telenor Microfinance Bank for $184.5 million to further develop mobile payments and digital financial services.

The acquisition is seen by experts as a step in the expansion plan Ma has set out in the over $330-billion economy with a young population and bulging middle class.

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Alibaba Group Chief Executive Officer Daniel Zhang said the acquisition will empower entrepreneurs to better serve consumers in the region.

Pakistan Software Houses Association (P@SHA) Secretary-General Shehryar Hydri said the deal is “good news” for the country.

“This is a group level deal and Pakistan is among the biggest markets in all those countries,” Hydri told The Express Tribune, referring to the growth in the country’s ecommerce segment over the last few years.

“This kind of acquisition validates a market. It is a positive for the country and the ecommerce segment.”

Officials familiar with the matter say Alibaba has plans to invest in warehouses and transportation as it looks to establish a strong footprint in the country.

“Alibaba’s acquisition of Daraz will take the IT sector ecosystem to the next level and will create a competitive atmosphere,” said Hydri. (With additional input from Reuters)

 

[Asian.Century]

Now Chinese are leadin a trade invasion through acquistions.

Any competitor is decimated through acquistion and buy out.