Ant Financial, which acts as e-commerce group Alibaba’s financial services affiliate, is in the process of raising up to RMB10bn ($1.5bn) in funding, Bloomberg reported yesterday.
The capital will be provided by a mix of existing backers as well as new investors ranging from insurance firms and large financial services firms to private equity funds and venture capital firms, according to a person familiar with the matter.
Formed by Alibaba in 2014 to house several of its financial services entities, Ant Financial now incorporates online payment platform Alipay, credit scoring system Sesame Credit and online investment fund Yu’E Bao among other services.
Ant Financial closed an undisclosed amount of series A funding in July 2015, issuing 12.4% of its shares to investors including undisclosed China-based insurers, China Development Bank and the state-owned social National Council for Social Security Fund, the latter of which acquired a 5% stake.
Postal service China Post Group supplied an undisclosed sum of funding for Ant Financial two months later through its investment unit, China Post Capital.
The latest funding is being raised in advance of an initial public offering which could be launched later this year, according to Bloomberg’s source, though the company may look to raise a third round of capital before it goes public.
The source said the capital could be used for acquisitions, with Ant Financial having invested in One97 Communications, the India-based owner of online payment company Paytm, financial data provider Shumi Fund and retail bank Postal Savings Bank of China over the past few months.