June 12, 2018
The largest-ever capital raise will be used, in part, to expand the global reach of an online payments company. Ahead of an expected 2019 initial public offering in China and Hong Kong, Ant Financial, the parent company of Alipay, netted $14 billion from a slew of investors. The Series C investment came in two tranches—around $3 billion denominated in Chinese yuan and the rest in U.S. dollars. Ant Financial was spun off from Alibaba Group shortly before its 2014 U.S. IPO.
Alipay, similar to PayPal in that it began its life as a simpler way for users of a pioneering e-commerce marketplace to make purchases, has been making inroads in non-Chinese markets. The cash infusion figures to supercharge those efforts.
“We are dedicated to building an open ecosystem with all our partners in China and beyond,” said Eric Jing, executive chairman and CEO of Ant Financial. “We will continue to invest in technology and innovation in order to serve unmet financial needs of people everywhere and to enable them to benefit from the development of the digital economy.”
According to a statement from the company, Alipay now has 870 million active users globally.