Ant Financial Services Group is due to close a $10 billion fundraising round that would push the company's valuation beyond $150 billion, the Financial Times reported, citing people involved in the transaction.
The capital raise of the financial arm of e-commerce giant Alibaba Group Holding Ltd. affiliate is the first to include investors outside of China, in which private equity groups Carlyle Group LP, General Atlantic, Silver Lake Partners, Sequoia Capital China and Warburg Pincus LLC, sovereign wealth fund Temasek Holdings Pte. Ltd., and institutional funds including Canadian Pension Plan Investment Board and BlackRock Inc. are expected to take part, the FT said, citing people familiar with the matter.
This was Ant Financial's third fundraising round in four years. However, some investors were turned away because they were not offering enough money or had backed rival Tencent-linked companies, people familiar with the matter told The Wall Street Journal. Tencent, which owns Chinese social-messaging app WeChat and a fast-growing payments network tied to it, has been shrinking the market share of Alipay, a mobile and online payments network of Ant Financial.
Investors in the latest fundraising round will receive convertible instruments, which will convert into shares when Ant Financial pushes ahead with its expected IPO, the FT said.
Ant Financial and some of its peers may reportedly face increased oversight from Chinese policymakers on concerns they could pose systemic risks to the Chinese economy.