Central Group has acquired 100% of the Thai unit of Zalora, an online fashion market owned by Rocket Internet SE for an undisclosed sum.
Rocket Internet, a nine-year-old Berlin-based internet company, focuses on building online markets and services.
It founded Lazada, its answer to Amazon in Southeast Asia, and owns other online market brands including Foodpanda delivery service.
Zalora was chosen because it is a leader in online fashion shopping in Southeast Asia, Central said in a statement on Friday.
The fashion marketplace also has a good e-commerce platform that would help strengthen Central's distribution channels.
"This is expected to double Central Online’s sales while customers can still choose to shop for fashion items under the Zalora brand, as Zalora will become the flagship fashion e-commerce platform for Central Group,” the statement said.
The deal will also strengthen logistics capabilities of both, Central said.
In April this year, Alibaba Group Holding Ltd paid $1 billion for control of Lazada Group SA, one of Rocket Internet's subsidiaries.
The deal would take the Chinese e-commerce giant to Southeast Asia and closer to a goal of shedding its home-market reliance.
Alibaba would pay $500 million for new shares in the closely held company and purchase an equal amount from existing investors.
Investors selling include Germany’s Rocket Internet SE, British supermarket chain Tesco Plc and Investment AB Kinnevik.