AliBaba acquires Daraz Group

Daraz Group, a leading e-commerce company in Pakistan, Bangladesh, Sri Lanka, Myanmar, and Nepal today announced that the company was fully acquired by Alibaba to become a member of Alibaba 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.

Daraz was founded in Pakistan in 2012 and has since grown into the most popular online shopping destination in the country. Today, the company operates online marketplaces in Bangladesh, Myanmar, Sri Lanka and Nepal. Daraz will continue to operate under the same brand following the transaction.

Bjarke Mikkelsen, Co-CEO, Daraz said, “With this transaction, Daraz has found its natural home in the Alibaba family, and we are proud to carry our part of the mission to ‘make it easy to do business anywhere’. With hard work and dedication, we have started the e-commerce journey in our markets, but we have still only scratched the surface of the potential.”

Dr. Jonathan Doerr, Co-CEO, Daraz added, “Together with Alibaba, we are ready to empower entrepreneurs in the region and to fulfill our promise to offer our customers the best selection of products with a high level of convenience. All of this would be supported by a best-in-class technology platform, a strong logistics network, and a vibrant community of ecosystem participants.”

Daniel Zhang, CEO of Alibaba Group, said, “We are excited for Daraz to become a part of the Alibaba ecosystem. 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.”


Alibaba Steps Up Efforts to Bring Pakistani Exporters Onboard for its B2B Portal

Alibaba is working to get more Pakistani exporters listed on its business-to-business electronic portal. The e-commerce giant wants to boost Pakistan’s exports by drastically improving the country’s e-commerce market.

For the same purpose, Alibaba has launched a Pakistan pavilion on its website to showcase the country’s indigenous products. Even before the dedicated portal, it had over 3000 paid members and over 250,000 general members from Pakistan.

Top Sellers

The majority of the paid members from Pakistan belong to Lahore, Sialkot, and Faisalabad. Categories related to textile, surgical instruments, and sports goods feature in the top-selling list at Alibaba’s Pakistani portal.

Alibaba’s Country Manager Jason Jia, however, says that they would like to see more members from Karachi, the country’s largest urban city.

In a ceremony in Karachi that was attended by several businessmen, Jason Jia said:

“We want to work together to introduce Pakistani products to the world markets. We are looking for more from Karachi, especially in the apparel and garments sector.”

China’s biggest e-commerce company charges up to $1,500 from the paid members annually. Alibaba also partnered with local companies to provide them with support services. These companies include:

  • NextBridge,
  • EB Excels,
  • NJ Dynamic Solutions,
  • Trademor,
  • Alpharex International.

Alibaba has over 2 million shops and 260+ million buyers with operations in over 190 countries in the world. The company is also looking to attract more than two million small and medium businesses operating in Pakistan.

Ant Financial recently bought 45% stake in Telenor microfinance bank, investing $184.5 million to enhance mobile payment and digital financial services. The move has been welcomed by online businesses operating in Pakistan as it will better integrate the process of buying and selling goods online. Currently, cash-on-delivery seems to be the preferred method for online shopping in Pakistan, with 90% of the online deals amounting to Rs 10 billion.