Alibaba reportedly injects 634 million dollar capital into Lazada

Chinese marketplace giant Alibaba Group is believed to have injected a further 634 million dollars into its Southeast Asia e-commerce subsidiary, Lazada.

The reported amount brings Alibaba’s total investment into the firm to over 1.8 billion dollars this year, according to Tech in Asia.

It comes as Alibaba continues to readjust strategies to compete with increasingly strong competition in its homeland of China, having most recently halted steps to launch its spin off Cloud Intelligence Group.

As a result of the announcement, which Alibaba had linked to the ongoing US-China chip war, the firm took a 9 percent hit to its US-listed shares.

This year also marked a large-scale restructuring strategy at the company, where plans to split the business into six groups were unveiled with the goal of unlocking shareholder value and fostering market competitiveness.

While Taobao Tmall Commerce Group was to remain under the Alibaba Group wing, the newly established units would be managed by their own CEO and board of directors, with listings in New York and Hong Kong to remain unaffected according to the group.

The move came as the company continued to face unprecedented headwinds in recent years amid Beijing imposing tighter restrictions on China’s tech industry.