Kaola is one of the largest Chinese shopping sites focusing on imported goods and competes in the space with BABA's Tmall Global and JD Worldwide (NASDAQ:JD).
Earlier this year, Kaola was in merger talks with Amazon's China unit.
Last year, Kaola imported more than 5,000 brands from 80 countries.
BABA shares are up 2.3% pre-market.
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