Most of the big things happening in the business world in recent times are connected to China in one way or another. After earning the nickname “the world’s factory,” the Asian giant is currently on its way to become the global leader in financial technology.
The rapid adoption of Internet-based financial services and the huge size of its market have made China a breeding ground for financial technology startups, and the majority of them are focusing the payments segment.
Ant Financial Services Group, China’s largest payments platform and the fintech arm of e-commerce giant Alibaba Group (BABA), has raised a whopping $14 billion to take forward the initiatives to expand its global footprint. It is learned that the dollar share of the funding is above $10 billion. The exercise, believed to be the biggest-ever single fundraising by a private entity, will enhance Ant’s fiscal prowess in the run-up to its much-awaited IPO.
The money will primarily be used for developing infrastructure for financial technology and expediting the global expansion of the company’s popular digital wallet system Alipay. In addition to Alipay, a broad range of other services such as credit services and wealth management services also helped Ant to become the leading player in the sector.
The fundraising will enhance Ant Financial’s fiscal prowess in the run-up to its much-awaited IPO
Ant’s market share growth has been reminiscent of its parent Alibaba’s fast-paced expansion in the international markets in recent years. The program, targeting about 2 billion consumers across the world, includes collaborations with payment firms in Asian countries like South Korea, Japan and India. It will give the company enough teeth to compete with global giants like PayPal.
Ant is all set to go public next year, and its stock is expected to be listed in stock exchanges in Mainland China and Hong Kong. With an expected valuation of about $150 billion, it will find a place among the most valuable companies in the segment. Experts are of the view that the company is in a uniquely advantageous position when it comes to the growth prospects.
Ant in a statement said the lion’s share of the latest investment came from Singapore’s sovereign fund and Warburg Pincus, a US-based private equity firm.
Most Popular
CL Earnings: Key quarterly highlights from Colgate-Palmolive’s Q2 2024 financial results
Colgate-Palmolive Company (NYSE: CL) reported its second quarter 2024 earnings results today. Net sales increased 4.9% year-over-year to $5 billion. Organic sales increased 9%. Net income attributable to Colgate-Palmolive Company was $731
Key takeaways from Visa’s Q3 2024 earnings report
Credit card behemoth Visa, Inc. (NYSE: V) this week reported mixed results for the June quarter, with earnings matching expectations and sales slightly missing the view. Both numbers grew in
Southwest Airlines (LUV): A look at the airline’s performance in Q2 2024
Shares of Southwest Airlines Co. (NYSE: LUV) were up over 6% on Thursday after the company beat earnings estimates for the second quarter of 2024. The stock has gained 4%