Ant Financial Completes $14 Billion Funding Round Ahead of IPO

Image source: Ant Group's official WeChat account

On the morning of June 8, VCBeat (WeChat official account: vcbeat) received news that Ant Financial had officially announced the completion of a new round of financing, with the total amount reaching $14 billion. Previously, Ant Financial had completed two rounds of financing in July 2015 and April 2016, respectively, with the latter raising $4.5 billion, setting a global record for the largest single private equity financing deal in the internet sector at that time.

Media reports have disclosed that Ant Group’s latest funding round was heavily subscribed by both domestic and international capital. The final funding sources included RMB capital from domestic investors, as well as USD capital raised from international investors by Ant International, a wholly-owned subsidiary of Ant Financial.

In addition to the continued follow-on investments by existing shareholders, a number of world-leading capital firms have become new strategic investors, including GIC (Singapore), Khazanah Nasional Berhad (Malaysia), Warburg Pincus, Canada Pension Plan Investment Board (CPPIB), Silver Lake Partners, Temasek Holdings, General Atlantic, funds under T. Rowe Price, The Carlyle Group, Janchor Partners, Discovery Capital Management, and Baillie Gifford.

Ant Financial stated that this round of financing will be primarily used for the global expansion of Alipay, investment in independent research and development, and the recruitment of top-tier global talent, thereby enhancing the capacity of Alipay and its partners to provide inclusive financial services to consumers and micro and small enterprises worldwide. Additionally, the funds will be utilized to cultivate local tech talent in emerging markets, support local digital transformation, and enable the general public to share in the dividends of the digital economy.

In recent years, Ant Financial has significantly accelerated its technological innovation and global expansion. In terms of technology research and development, the company unveiled its BASIC strategy, prioritizing investments in blockchain, artificial intelligence, security, the Internet of Things (IoT), and cloud computing. Media reports indicate that by 2018, Ant Financial had ranked first globally in the number of blockchain patent applications. Regarding globalization, beyond outbound tourism services, Ant Financial has focused on expanding its presence along the Belt and Road Initiative corridors. In collaboration with local partners, it has launched nine localized versions of Alipay, covering countries and regions including India, South Korea, Pakistan, Bangladesh, Thailand, the Philippines, Indonesia, Malaysia, and Hong Kong, China.

As of March 31, 2018, Alipay and its global partners had reached 870 million annual active users.