Alibaba Group (BABA) - Get Report Wednesday said it was increasing its stake in online mall Lazada Group SA, as it looks to conquer Southeast Asia.

Alibaba has invested $1 billion to increase its stake in the e-commerce site to 83% from its previous 51%.

Alibaba shares were 0.24% in premarket trading Wednesday, after closing at $141.53 on Tuesday.

The Chinese e-commerce giant is buying out most of the other backers that values Lazada at $3.15 billion. Temasek Holding Pte will be the only other remaining investor.

Rocket Internet Wednesday said it had sold its remaining 8.8% stake in Lazada to Alibaba for $276 million and Kinnevik AB sold its 3.6% stake for $115 million.

Other previously disclosed backers include British supermarket Tesco plc (TSCDY) .

Founded by Rocket Internet in 2012, Lazada currently serves six countries in Southeast Asia. It is primarily focused in online commerce, but it expanded into e-groceries with the acquisition of Singapore-based Redmart last year.

Alibaba took control of Lazada in April 2016 in a $1 billion deal with Rocket Internet.

The move comes as competitors including and Inc (AMZN) - Get Report look for inroads into Southeast Asia.

Singapore-based Lazada is the leading e-commerce platform in Indonesia, Malaysia, the Philippines, Singapore and Vietnam, giving Alibaba access to this untapped makers.

With only 3% of the region's total retail sales conducted online, Southeast Asia is expected to offer tremendous growth potential, Alibaba said Wednesday.

"As a market leader, Lazada has demonstrated its ability to execute and further lead the region in products and services with the best consumer experience in Southeast Asia while growing a strong ecosystem that supports small businesses going online," said Daniel Zhang, CEO of Alibaba Group.

"The e-commerce markets in the region are still relatively untapped, and we see a very positive upward trajectory ahead of us. We will continue to put our resources to work in Southeast Asia through Lazada to capture these growth opportunities," he added.

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