DFDL advised Alibaba on Daraz Acquisition in Bangladesh and Myanmar
May, 2018 - Myanmar
Alibaba has acquired Daraz Group, a leading e-commerce enterprise operating in Pakistan, Bangladesh, Sri Lanka, Myanmar, and Nepal. On Tuesday May 8th, Daraz Group announced that it was taken over by Alibaba. As a result of this acquisition, it has now become a fully-fledged member of the Alibaba Group.
Through this transaction, Daraz will now be able to draw upon Alibaba’s global reach, leadership, and wealth of technological experience in sectors such as online retail activities, mobile payments, and logistics. This will ensure its continued robust growth in these five major South Asian nations, comprising a combined population of over 460 million, 60% of whom are under 35 years of age. Daraz was founded in 2012, and has since grown into the most popular online shopping marketplace in the countries where it operates. Daraz will continue to use its name and branding following the transaction.
In Bangladesh, DFDL assisted Alibaba’s subsidiary by performing due diligence on the Bangladeshi operations of Daraz. This included assistance on structuring the investment, legal and regulatory compliance, licensing, corporate restructuring, and completion formalities. With Daraz as one of the foremost e-commerce platforms in Bangladesh, and this being Alibaba’s first foray into the realm of e-commerce in the country, this transaction is highly significant in a number of ways.
In Myanmar, DFDL led the local due diligence and company review of the software application and assets of Daraz. This included assistance on structuring the investment, legal and regulatory compliance, licensing issues, corporate restructuring, and transaction closing formalities. This acquisition of Daraz’s assets in Myanmar, where it operates under the name “Shop.com,” marked Alibaba’s entry into the country’s online marketplace, and subsequent transformation into Myanmar’s largest online retailer.
DFDL’s assistance to Alibaba in Bangladesh was led by Shahwar Nizam, Partner, and assisted by Mahboob Aziz, Senior Associate.
In Myanmar, the local team was led by William Greenlee, Partner, and assisted by Dave Seibert, Senior Legal Adviser.
