Alibaba Financial Arm Is Now Valued At $40 Billion
Alibaba Finance Arm, Financial Ant, is now said to be valued at more than $40 billion.
Alibaba Group Holding is the e-commerce giant in China. Irrespective of its weak presence in international market, the company is a global name and business that every other online retailer aspires to be. The Chinese e-commerce corporation provides a unique platform to its merchants to do business and earn way more than all other online retailer in the world. This can be seen when it announced its Initial Public Offering (IPO) last year. Overall, Alibaba’s Finance Arm has also been one of its vital assets.
It is known that the finance affiliate of Alibaba Group runs the biggest online payments business in the country. Bloomberg stated that the finance arm of the company has recently closed a private placement that has helped to raise its value to more than $40 billion. Sources familiar with the matter confirmed this news where Alibaba’s finance wing is now said to be valued at $40 billion or more in the latest funding round.
Reportedly Zhejiang Ant Small & Micro Financial Services Group Co. is planning to open an internet bank on June 25, which will be named as ‘MYBank’. It is believed that the officials have not yet disclosed any details regarding MYbank and also asked ‘not to be identified’ yet due to confidentiality issues. The founder and chairman of the Chinese corporation, Jack Ma, also controls the finance arm, named as Ant Financial.
Sources suggest that Ant Financial previously sold stakes to various external investors. Now entities, such as China Development Bank Capital Co. and China’s National Social Security Fund, have also become common and strategic investors in it. However, it does not disclose information regarding the investments it has received from any sides.
According to Bloomberg, “The finance affiliate plans an initial public offering next year that includes a partnership structure allowing top management to nominate a majority of directors.”
The Chinese company’s finance arm also runs operations of its online mobile business payment service, AliPay. As it is believed, the finance affiliate of the company is quite strong and it is going in the right direction. In addition, the decision of going public in the coming year will not only help it, but Alibaba itself as well.
Bloomberg continues, “Alibaba is entitled to either a third of Ant Financial shares or a one-time payout equal to 37.5 percent of the equity value, according to Alibaba’s IPO prospectus. Alibaba also holds perpetual claim to 37.5% of Ant Financial’s pretax earnings until it receives a third of the financial arm’s equity.”