This will fund its globalisation plan and talent investment in emerging markets.
GIC and Temasek joined the Series C funding of China's Ant Financial, which raised US$14b. The round includes an RMB tranche raised by Ant Financial from domestic investors and a USD tranche raised by Ant International.
According to an announcement, the funds will be used to accelerate Alipay’s globalization plans and invest in developing technology. They will also be used to cultivate high-tech talent in emerging markets.
GIC and Temasek joined the institutional investors in the USD tranche, such as Khazanah Nasional Berhad, Warburg Pincus, Canada Pension Plan Investment Board, Silver Lake, and General Atlantic, amongst others.
"Ant Financial’s strong business profile, technology-driven revenue growth and rapid global expansion led to strong investor demand for the Series C equity financing," it said.
Since the launch of Alipay in 2004 and the establishment of Ant Financial in 2014, it has built an integrated technology platform and an ecosystem of partners for "inclusive" financial services to individuals and SMEs globally. "The Company will continue to invest in developing its blockchain, AI, security, IoT and computing capabilities to upgrade its global technology platform for the next generation," Ant Financial added.
It is currently replicating the “Alipay model” in India, Thailand, the Republic of Korea, the Philippines, Indonesia, Hong Kong, Malaysia, Pakistan, and Bangladesh. Alipay, together with its global partners, served approximately 870 million annual active users globally and over 15 million small businesses in China, it said.
Deutsche Bank, Citi, China International Capital Corporation, CITIC Securities, J.P. Morgan, and Morgan Stanley acted as financial advisors for the Series C equity financing. Simpson Thacher & Bartlett and King & Wood Mallesons acted as legal advisors to Ant Financial and Ant International, whilst Sullivan & Cromwell LLP acted as legal advisor to the financial advisors.
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