Friday, February 27, 2015

Alibaba Group restructures loans division

News this week: New York-listed Alibaba Group has announced the company’s completed restructured relationship with Zhejiang Ant Small and Micro Financial Services (Ant Financial) – now officially parent company of Alipay and Alibaba’s small- and medium-sized enterprise (SME) loan business.

Alibaba Group and Ant Financial first agreed on a purchase agreement prior to Alibaba’s IPO in September 2014. The restructuring sees Alibaba reduce its risks involved with the loan business and refocus on the e-commerce sector. According to Alibaba, Alipay has more than 300 million registered users and processes more than 80 million transactions per day as of December 2014.

The Alibaba Group will no longer consolidate the financial results of the SME loan business in its future financial filings. Ant Financial’s businesses portfolio offers a range of services complimentary to Alibaba’s “e-commerce ecosystem” including Alipay, Alipay Wallet, Yu'e Bao, Zhao Cai Bao, Ant Micro Loan and Sesame Credit.

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