Alibaba Group Holding Ltd. continues its acquisition spree as the Chinese Internet giant announced that it is buying a controlling stake in Lazada Group, a Singapore e-commerce startup, to the tune of $1 billion. The said procurement is the company's biggest investment to date.

Alibaba will be shelling out $500 million for newly issued shares as well as another $500 million to purchase existing shares. Among those shareholders that will be bought out are British supermarket operator Tesco PLC, tech incubator Rocket Internet AG and Sweddish firm Investment AB Kinnevick.

Like Us on Facebook

Tesco PLC is selling its 8.6 percent stake for $129 million, Rocket Internet AG is unloading 44 percent of its shares for $137 million and Investment AB Kinnevick is set to receive $57 million for its 3.8 percent stake.

"The transaction will help us to accelerate our goal to provide the 560 million consumers in the region access to the broadest and most unique assortment of products," Maximilian Bittner, CEO of Lazada said in a statement. "Furthermore, leveraging Alibaba's unique knowhow and technology will allow us to rapidly improve our services and provide an even more effortless shopping and selling experience."

Alibaba's acquisition of Lazada comes in the wake of the internet giant's expansion into logistics, e-commerce and even entertainment.

Lazada, meanwhile, is an online department store that operates in Southeast Asia. It offers a variety of items ranging from health and beauty products to home appliances.

TagsAlibaba, lazada, Alibaba Lazada deal