The founder of Alibaba, Jack Ma, has finally come forward to make an investment in Pakistan’s e-commerce sector. Being greatly impressed by how Pakistan is progressing in this field, Jack Ma has recently disclosed a deal with the Rocket Internet for acquiring Daraz. Daraz that was founded by the Rocket Internet in 2012 is operating not only in Pakistan but also in Bangladesh, Myanmar, Sri Lanka, and Nepal.
Although it has not been announced officially but a spokesman from the Alibaba company has confirmed about the deal. The rumours of the acquisition have been circulating over the past few months and this is not the first time Alibaba has purchased a rocket company. Two years ago in South Asia, Lazada was for the first time acquired by the world’s most famous online retailer company. With the acquisition of Daraz, experts are hoping that it will set the direction of Pakistan’s e-commerce industry.
The Alibaba Company is slowly spreading itself into lower profile but highly populous countries in South-Asia and Pakistan is one of them. Initially it kept its focus on India where it has backed Paytm but this year it is expanding its wings in Pakistan. After the acquiring of Daraz, a fintech investment from Alibaba affiliate Ant Financial is followed, which runs Alipay as well as other financial services of Alibaba.
Before that in March, in Telenor Micro finance Bank, Ant paid $184.5 million for a 45% stake. The acquiring of Daraz recently is a great move by Alibaba-Ant for expanding itself in the South Asian region. Along with that, Alibaba is also seem interested in Bangladesh where is there is a rising trend of internet adoption.
The burgeoning youth in the South Asian countries is turning the region into a fast growing consumer market of online retailing. And the reports state that the world’s biggest online company is also pushing to acquire a 20% chunk of payment from bKash which will help it to expand further.