Thursday, December 26, 2019

Alibaba’s Daraz and Wow.lk sign strategic partnership to grow digital commerce in Sri Lanka


Daraz Sri Lanka and Dialog Axiata Group have entered into a collaborative strategic partnership on digital trade. Daraz Sri Lanka is merging wOw.lk's management and business activities, the online retail platform owned by Dialog Axiata Group, as the first step in this relationship. The integration will help Daraz expand its e-commerce presence in Sri Lanka further and grow it. Visitors to wOw.lk will be redirected to Daraz.lk with effect from 1 December, allowing greater access to products and services through Daraz.lk, the fast-growing online retail site.

That said, current wOw.lk customers who purchased items from their platform will continue to enjoy their purchasing point's guarantee arrangement. WOw.lk has been instrumental in building Sri Lanka's e-commerce presence over the past seven years. With this new partnership in the making, customers of Dialog will benefit from Daraz as an exclusive online shopping platform.
"Integrating the e-commerce service of Dialog gives Daraz a secure marketplace and allows us to drive growth more vigorously while offering our customers the best in online shopping. Wow.lk is one of Sri Lanka's pioneers of e-commerce, and we plan to build on this legacy through Daraz.lk," said Rakhi Fernando, Managing Director of Daraz.
Daraz's marketplace model has proven itself successful for both shoppers and seller partners. It has given brands more visibility and a more extensive range of products from which to shop.
Daraz's affiliation with the global cynosure of success in e-commerce - Alibaba, has ensured that timely and proven technology gets transferred to an online market as young as Sri Lanka.
Daraz.lk has created a leveling ground for international brands as well as SMEs over the three years of operations on the island to be part of their journey to expand the online retail market. The latest development will result in a merger of more brands, adding to Daraz's current 800,000 plus product range. Dialog Axiata PLC Chief Digital Services Officer, Dr. Nushad Perera, has commented on the partnership:
"Our two organizations are strongly committed to building the digital infrastructure of our country, and this partnership will further improve access for every Sri Lankan to affordable digital trade."

OSL Take: Such an acquisition has paved the way for other interested parties to consider such a venture as well. With the government’s focus on steering the country towards a digitized economy, such investments are bound to prove fruitful. On the other hand, the availability of cutting edge Financial Technology in the country would be an added advantage for possible investors to the country. Also, the passage of the Electronic Transactions Amendment Bill has further enabled Sri Lanka to engage in cross border transactions.
It will improve Sri Lanka’s ability to trade with these countries using digital platforms. Hence, businesses in Sri Lanka, as well as any new entrants to the country’s economy, would be benefited when carrying out business with other countries. The Sri Lankan government has also offered incentives for companies engaged in the development of digital infrastructure. Foreign businesses/investors could, therefore, explore opportunities in Sri Lanka’s digital infrastructure sector.
VBS/AT/26122019/Z_TB2

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