BREAKING: JP Morgan to Invest Heavily in Rocket Internet’s E-commerce Startup Lazada
Amir Karimuddin - 5 September 2012
We get the scoop that prominent investment firm JP Morgan is set to invest in Southeast Asia startup. The recipient is none other than Rocket Internet’s e-commerce startup Lazada. We still try to confirm the total amount of investment, but it’s reported to reach hundred of millions of US Dollar. Lazada Indonesia, deemed as the most potential, gains the biggest chunk of all. Lazada currently operates in five countries in Southeast Asia, including Indonesia, Malaysia, Thailand, Philippines and Vietnam.
Apparently this isn’t the first time JP Morgan investing in Rocket Internet startups. According to Venture Beat, JP Morgan had poured its money for Rocket Internet properties in Europe (for Zalando), Brazil (for Dafiti) and Russia (for Lamoda). The previous investment on startup from JP Morgan ranges from $40 to $80 million. If the investment in Lazada really reach more than $100 million, it will be JP Morgan’s largest investment in startups. While we are wondering why big boys like JP Morgan invests heavily for a Southeast Asia startup, this move may legitimate bright prospect for startups in the region.
This supposes to be a “great news” for Rocket Internet business in the region following the close down of its Singapore’s Home 24 and series of layoffs in Rocket Internet Philippines. The departure of severalkey players in Rocket Internet Indonesia may raise an eyebrow about the future of its business here, but this investment will shut the question down and bring business stability for the next couple years.
The aggressive action doesn’t stop there. We understand that Lazada Indonesia is about to tie partnership with largest mobile operator Telkomsel on using its e-wallet solution as payment option. Will be another big move for carrier’s payment solution on e-commerce scene after XL made partnership with Multiply.
We recently talked with Lazada Indonesia’s Managing Director Magnus Ekbom and he revealed that Lazada Indonesia, which was just launched early this year, has become of the most e-commerce site with big traffic, in par with other big local players. Furthermore, they aim to be one of the Top 20 sites in the country in a few months.
[image source: Emmanuel Dunand/AFP/Getty Images]