The Chinese marketplace giant Alibaba Group is said to have invested another 634 million US dollars (578 million euros) in its Southeast Asian e-commerce subsidiary Lazada.
This amount brings Alibaba’s total investment in the company to over $1.8 billion (€1.64 billion) this year, according to Tech in Asia.
Alibaba continues to adjust its strategies in the face of increasing competition in its home country of China and recently halted moves to launch its spin-off Cloud Intelligence Group.
As a result of the announcement linking Alibaba to the ongoing US-Chinese conflict over microchips, the company’s US-listed shares suffered a 9 percent decline.
This year also marked the company’s major restructuring strategy, unveiling plans to divide the business into six groups with the aim of increasing shareholder value and promoting market competitiveness.
While Taobao Tmall Commerce Group will remain under the Alibaba Group umbrella, the newly formed entities will be led by their own CEO and board, with listings in New York and Hong Kong remaining unaffected, according to the group.
The move came as the company continued to face unprecedented headwinds in recent years as Beijing imposed tighter restrictions on China’s tech industry.