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A company spun out of Alibaba is now worth as much as $50 billion

Jul 3, 2015, 21:53 IST

Ant Financial, the online payment service spun out of Alibaba in 2011, just closed a Series A round that reportedly values the company at roughly $50 billion.

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The actual amount of the financing was not disclosed, but TechCrunch reports it gives Ant Financial a valuation ranging from $45 billion to $50 billion.

Ant Financial is Alibaba's finance affiliate, running the payments service Alipay, investment fund Yu'e Bao, and online lending service MYBank. It's controlled by Alibaba Chairman Jack Ma and has over 1 billion users across all the services it provides.

One of the biggest investors in this round includes the National Social Security Fund (NSSF), China's largest pension fund, which now holds about a 5% stake in the company.

Ant Financial also plans to go public sometime next year, Bloomberg said in a previous report. Alibaba had its own record-breaking, $25 billion IPO last year.

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Alipay is China's largest online payment service that's similar to the US' Paypal. Last year Alipay handled nearly $800 billion in payment volume, while almost 80% of the merchandise value ordered on Alibaba went through its payment processing service.

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