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Maximilian Bittner started Lazada in 2012 with the goal of building an Amazon-like business model in Southeast Asia in order to capitalize on the region's developing online consumer market and Amazon's limited presence. Prior to the release of iOS and Android mobile apps for its platform in June of the following year, Lazada's e-commerce websites underwent a soft launch in 2012.

The business started operating in Singapore, where it is now based, in May 2014. Despite having net revenues of $154.3 million and net operating losses of $152.5 million in 2014, Lazada's losses as a percentage of gross merchandise value were lower than they were in 2013 due to an increase in marketplace sales to $384 million in 2014 from $95 million.

When people favored buying in physical and mortar businesses in 2015, Lazada ran into trouble. At that time, 10% of people internationally were internet shoppers, but less than 1% of people did so. This required Lazada to address problems with the absence of credit cards, the ensuing necessity for cash on delivery systems, and the requirement for dependable delivery—especially in remote areas.

When Lazada reported $1.36 billion in yearly gross merchandise value across the six markets it serves, it claimed to be the largest e-commerce company in Southeast Asia.

The business added LazMall to its site in September 2018 to entice customers to buy from reliable companies. New services were also implemented, including a 15-day return policy and choices for next-day delivery.

Lazada and Citibank teamed in December 2019 to introduce a new credit card, initially in Singapore and then in other nations.

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