E-commerce group Alibaba’s financial services affiliate, Ant Financial, is set to raise more than RMB 20bn ($3.1bn) at a valuation of about $60bn, China Money Network reported today.
The round will be co-led by Chinese sovereign wealth fund China Investment Corp and financial services firm China Construction Bank, with participation from undisclosed insurance firms and other investors.
Ant Financial encompasses several Alibaba-related financial services units including online payment platform Alipay, lending marketplace Zhao Cai Bao, online investment fund Yu’e Bao, credit scoring service Sesame Credit and online bank MYbank.
The company raised between $5bn and $6.2bn in its first round of funding, in July 2015, receiving investments from China Development Bank, National Council for Social Security Fund and unnamed insurance companies, before China Post Capital, the investment arm of China Post, added an undisclosed sum in September.
Reports last month suggested Ant was targeting up to $3.1bn at a $50bn to $60bn valuation, meaning it has likely upgraded the round due to investor interest. It is reportedly raising the funding ahead of a planned initial public offering.