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

Advertisement

alibaba jack ma

AP Images

Alibaba CEO Jack Ma

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.

Advertisement

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.

Complimentary Tech Event
Transform talent with learning that works
Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

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.

Advertisement

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.

NOW WATCH: Mark Cuban explains why downloading Snapchat is a huge mistake