Zhejiang Ant Small & Micro Financial Services Group Co., controlled by Alibaba‘s founder Jack Ma, is raising RMB20 million ($3.1 billion) at a valuation of $60 billion.
The amount of funding is higher than previously reported, said the China Money Network. The valuation is also higher, compared with $50 billion in March.
Ant Financial’s earlier target was $1.5 billion for this second round of financing before a potential initial public offering. But the company raised its target after it saw higher demand from investors.
Ant Financial runs Alipay, China’s biggest online payment service, and controls Yu’e Bao, China’s largest money-market fund with more than RMB600 billion of assets. Taken together, the services have more than 400 million annual active users. The company’s micro lending business handled about 30 billion yuan of loans in January.
Ant Financial had raised more than 12 billion yuan ($1.9 billion) in July 2015, from National Social Security Fund, among other investors. That round, in which the company sold 12.4 per cent stake, had valued the company at $45 billion.
China’s four biggest insurance companies—China Pacific Insurance Group, People’s Insurance Company of China, China Life Insurance Co. and New China Life Insurance Co. Ltd.—also participated in the round.
Goldman Sachs, JP Morgan Chase and China International Capital Corp are advising Ant Financial on the fundraise.