Alipay Makes Ant Financial worth $75 billion in valuation
Alipay started its business in 2004 as a platform for the customers of Alibaba Group Holding Ltd. so that they can buy goods online more easily.
ALIPAY’S PARENT COMPANY:
The business of Alipay belongs to Ant Financial which is controlled and presided by Alibaba founder Jack Ma. Now the parent company is worth $75 billion which outstripped Goldman Sachs Group Inc.
Elinor Leung, the head of the telecom and Internet research at CLSA in Hong Kong explains the scenario in terms of Ant Financial’s valuation. The valuation is not deemed bizarre or unfamiliar since the company, Ant Financial, was at about US$60 billion in June. The valuation increased right after the raising US$4.5 billion.
Leung assumes that most of the value of the parent company is in Alipay. As a matter of fact, Alipay is the largest payment service in China. The online payment service is worth $50 billion. Eventually, its microloan service is valued another $8 billion as projected. Additionally, Ant’s wealth management department has a valuation of $7 billion. The remaining valuation comes from cash and investments. Thus, Ant is actually outperforming Goldman’s $70 billion market value lately.
“Alipay has a very strong leadership in terms of online payment ecosystem,” Leung said. “Alipay is not just for payment.” It is also a “big distribution platform for Ant Financial’s other products.”
According to Elinor Leung the company has brighter days ahead considering the current performance.