Its CEO, James Dong said the profitability it registered last month proved the effectiveness of the company’’s business strategy, according to a source with direct knowledge of the matter, as reported by Dow Jones Newswires.

Dong also told employees at an internal meeting today that Lazada would continue to actively invest in Southeast Asia as it seeks to increase international sales amid slowing growth in China.

News of Lazada’s profitability follows an announcement by its parent company, Alibaba earlier this year that Lazada’s loss per order had narrowed significantly after it improved monetisation and lowered logistics costs.

While Alibaba does not disclose Lazada’s specific financials, it said its international e-commerce unit posted an adjusted Ebitda loss of US$1.12 billion last year from the US$688 million recorded in 2022, largely due to increased investment.

The company’s positive Ebitda status can be attributed to some of the initiatives it has taken since last year, including the release of LazzieChat, the first eCommerce AI chatbot of its kind in Southeast Asia, to improve its operations.

Last month, Lazada Malaysia COO Zed Li also said it was committed to supporting growth of small businesses through the use of artificial intelligence tools.