Alibaba Expands International Business With $2 Billion Investment in Turkey’s Trendyol
Alibaba (BABA) reportedly plans to boost its business outside of China with a $2 billion investment in Turkey’s Trendyol, the Chinese tech giant announced Monday after a meeting with Turkish President Recep Tayyip Erdogan.
KEY TAKEAWAYS
- Alibaba plans to invest $2 billion in Turkey’s Trendyol, of which it holds an 86.5% stake.
- Alibaba will set up a data center in Ankara and an export operations center at Istanbul airport.
- Alibaba has already invested $1.4 billion in Trendyol.
Alibaba also suggested it plans to set up a data center and a logistics center in Turkey’s capital of Ankara, as well as an export operations center at Istanbul airport.
Alibaba has already invested $1.4 billion in Trendyol and holds an 86.5% stake in the e-commerce platform, which hosts more than 250,000 merchants who sell around 200 million products.
Alibaba’s international commerce unit has quickly become its fastest-growing, with 41% revenue growth for the latest quarter, which ended June 30. This is partly due to the performance of Trendyol and Lazada, which is focused on Southeast Asia and headquartered in Singapore.
Trendyol’s other investors include SoftBank Group, General Atlantic, Qatar Investment Authority and Abu Dhabi sovereign fund ADQ.
American depositary receipts (ADRs) of Alibaba were down about 0.7% in early trading as of 10 a.m. Eastern Time on Monday and are down about 6% for the year so far.
