Tag Archives: Valuation
HONG KONG (Reuters) – China’s Ant Financial Services Group is planning to raise up to $ 5 billion in fresh equity that could value the online payments giant at more than $ 100 billion, people familiar with the move told Reuters.
A fundraising would bring Ant, in which e-commerce firm Alibaba Group Holding Ltd is taking a one-third stake, a step closer to a hotly anticipated initial public offering by establishing a more current valuation.
Ant’s last fundraising in 2016 valued the owner of Alipay, China’s top online payment platform, at about $ 60 billion. The new round should start with a valuation of between $ 80 billion to $ 100 billion, the people said.
Ant is currently in talks to appoint advisers for the fundraising which is expected to be launched in the next couple of months, they added.
Ant declined to comment on its fundraising plans. All the people spoke to Reuters on the condition they not be identified due to the sensitivity of the issue.
While no timetable for an IPO has been set, nor any location yet chosen, Ant’s plans are being viewed as a pre-IPO fundraising, the people said. A pre-IPO round is an increasingly common move by sought-after Chinese companies to establish valuations and widen their investor base ahead of going public.
It was not immediately clear how the company plans to use the fresh cash.
The exact timing and size of the fundraising still depends on investor feedback but any deal will add to an already hectic pace of domestic and offshore fundraising by Chinese tech firms that are looking to expand both at home and abroad.
Chinese e-commerce firm JD.com is raising funds for its logistics unit with a target of attracting at least $ 2 billion, while live-video streaming start-up Kuaishou is nearing the close of a $ 1 billion funding round, sources have said.
Ant’s own existing investments include stakes in Paytm, the Indian mobile payment and e-commerce website, and Thai financial technology firm Ascend Money.
Last month, however, Ant suffered a setback when a U.S. government panel rejected its $ 1.2 billion offer for money transfer company MoneyGram International over security concerns.
At home, in addition to its core online payments business, which Ant says has 520 million yearly users, the company also offers wealth management, credit scoring, micro lending and insurance services.
Last week, Alibaba announced it would take a 33 percent stake in Ant – replacing the current system where Alibaba receives 37.5 percent of Ant’s pre-tax profit – in what was viewed as an important step ahead of any IPO.
Alibaba set up Alipay in 2004, modeling the business on PayPal, to help Chinese buyers shop online, and later controversially spun it off ahead of its own listing in 2014. Jack Ma, Alibaba’s founder, controls Ant, according to Alibaba filings with the U.S Securities and Exchange Commission.
Ant is considered by some analysts as one of the most valuable Alibaba assets due to its unique position in Chinese e-commerce.
Current shareholders in Ant include large state-owned institutions such as China Life Insurance, China Post Group – parent of Postal Savings Bank of China – and a unit of China Development Bank.
Reporting by Sumeet Chatterjee and Julie Zhu; Additional reporting by Kane Wu; Editing by Muralikumar Anantharaman and Edwina Gibbs
Video streaming platform Roku has raised $ 219 million in its Wednesday initial public offering.
Priced at $ 14 a share, the company sold 15.7 million shares from Roku and some of its private shareholders, valuing the company at $ 1.3 billion. The stock will make its debut on the Nasdaq exchange today under the symbol “ROKU.” The IPO was a success for Roku, which had initially proposed a $ 12-14 a share range.
Roku’s boxes allow users to stream content from a variety of video services, including Netflix, YouTube, and HBO. As of June 30, the company has 15.1 million active accounts, with users streaming more than 6.7 billion hours in first half of the year.
While the growing streaming trend has made Roku popular, the company has had largely unprofitable growth since it was founded in 2002. Last year, the company brought in $ 399 million in revenue, but lost $ 43 million. In the first half of this year, it lost $ 24.2 million.
According to TechCrunch, Roku had previously raised more than $ 200 million in capital since 2008. Menlo Ventures was the largest stakeholder prior to the IPO, owning 35.3%, and Fidelity owned 12.9%.
As businesses are increasing turning to the cloud for enterprise-level software and services, login management startup Okta announced today it has raised a fresh $ 75 million in funding.
Okta helps companies manage the various logins, passwords, and access to a plethora of cloud-based services they may have need of on a consistent basis. Employees enter login info to various services via Okta the first time, then refer back to Okta rather than logging in directly. (So for example, Okta could manage your login info for your company email account, task management service Asana, and the company brand’s Twitter account.) The idea is to get a better sense of who has access to what services, while eliminating possible phishing attacks or other malicious ways a hacker might gain access to a company’s various assets.
“We’re at an important inflection point where IT leaders, product developers, industry analysts and the biggest technology companies in the world are acknowledging the critical role identity plays in connecting people, apps, devices and organizations,” said Okta CEO Todd McKinnon in a statement.
The funding round itself was led by Andreessen Horowitz, Greylock Partners, and Sequoia Capital, with participation from additional existing investors. It also brings the total raised by the company to $ 230 million, and boosts its valuation to $ 1.2 billion, according to the Wall Street Journal. (Yes, for those keeping track, Okta is now the latest member of the Unicorn club — aka startups with a valuation that exceeds $ 1 billion.)
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