What’s new: Ant Group’s consumer finance unit will receive 22 billion yuan ($3.5 billion) fresh funding from a group of investors including one of China’s state-owned asset managers.
China Cinda Asset Management Co. will join a group of investors led by Ant Group in the new funding round of Chongqing Ant Consumer Finance Co. Ltd. Other investors include Sunny Optics, Boguan Technology, Yufu Capital and Jiangsu Yuyue Medical Equipment & Supply Co. Ltd., according to company filings.
China Cinda will hold a 20% stake in the unit with an investment of 6 billion yuan. Ant Group remains the largest shareholder with a 50% stake. Chongqing Ant Consumer Finance will boost its registered capital to 30 billion yuan from current 8 billion yuan after the fundraising.
The context: Chongqing Ant Consumer Finance started operations in June, taking over consumer credit businesses from Huabei and Jiebei — Ant’s biggest money-earners.
The unit’s establishment is part of a government-ordered overhaul of Ant to comply with tightened regulatory requirements for fintech platforms. Regulators last year scuttled Ant’s $35 billion initial public offering, kicking off a yearlong crackdown to curb breakneck growth for the entire internet sector and the rapid expansion of private capital.
Contact reporter Han Wei (weihan@caixin.com) and editor Anthony Mace (hello@caixin.com)
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