China’s Ant Financial, the payment affiliate of e-commerce giant Alibaba, has completed a mega-funding round that raised a total of $14 billion from domestic and international investors.
The fundraising was made up of a yuan-denominated tranche that came mainly from existing shareholders, as well as a dollar-denominated tranche raised from global institutional investors that included Singapore’s sovereign wealth funds GIC and Temasek, Malaysia’s Khazanah Nasional Berhad and the Canada Pension Plan Investment Board. Private equity groups like Warburg Pincus, Silver Lake Partners and General Atlantic also participated in the dollar tranche, according to a statement from Ant Financial.
Ant Financial said it intends to use the proceeds to accelerate globalization plans and invest in developing technology. The company, which operates the Alipay app, money-market fund Yu’e Bao and its own online banking branch in China, aims to eventually provide financial services for consumers worldwide. It recently acquired stakes in several Asia-based financial institution, including Bangladesh’s fund-transfer service bKash and Pakistan’s Telenor Microfinance Bank, while testing out a local version of Alipay in Hong Kong, through a joint venture with billionaire Li Ka-shing’s CK Hutchison Holdings.