Alibaba snaps up Daraz
Chinese tech giant continues to eye Bangladeshi tech ventures
Yesterday, Chinese tech giant Alibaba expanded its business into Bangladesh by purchasing online marketplace Daraz. This move can be seen as a game-changer for Bangladesh’s e-commerce landscape. The financial details of the transaction, which includes Daraz’s entire business in Bangladesh, Myanmar, Sri Lanka, and Nepal, were not disclosed to the public.
The e-commerce market in Bangladesh is currently worth Tk 2,000 crore (roughly $250 million) and is projected to grow into a billion-dollar industry by 2021 according to the e-Commerce Association of Bangladesh. However, with the recent entry of Alibaba – the world’s largest online trading platform – into the market, it’s entirely possible that this goal will be met even sooner than originally planned. This is fantastic news for the country as a whole, as it will bring much needed investment and opportunities for growth in the near future.
“Alibaba’s arrival confirms that Bangladesh’s e-commerce market has a lot of potential,” said Razib Ahmed, the previous president of e-CAB.
The agreement, coming after Alibaba’s acquisition of 20 percent of bKash, indicates that Bangladesh, a country with a population exceeding 160 million and growing internet use, has gotten the Chinese e-commerce giant’s attention.
According to market experts, there are about 2 million online purchasers in Bangladesh. With this new deal, Bangladeshi customers will be able to purchase products directly from Alibaba’s marketplace without incurring high shipment charges and customs duty.
Going forward, entities should not feel threatened by Alibaba’s entry, and instead should focus on improving their own business, said Ahmed. With Alibaba’s investment, Daraz’s total merchant number will expand significantly from the existing 200,000. This will allow for entrepreneurs to better serve consumers in the region through Alibaba’s technology and expertise, said Daniel Zhang, chief executive officer of Alibaba Group.
