Alibaba’s arm MYbank seeks to raise RMB 6 billion in its initial fundraising
Jul 31, 2019 (China Knowledge) - China's MYbank, an offshoot of Alibaba Group Holding Ltd (BABA), plans to raise about RMB 6 billion (USD 871 million) in its initial fundraising. The subdivision seeks to use the proceeds to boost its capital base and support lending to small businesses.
Several existing shareholders, including Alibaba affiliate Ant Financial Services Group and Fosun International Ltd (00656), are looking to participate in the latest fundraising. However, MYbank, Ant, and Fosun declined to comment.
MYbank was launched in June 2015. The bank's annual report shows that it has provided services to 12.27 million small firms and private business owners, with an average amount of loan at RMB 26,000 by the end of last year.
The bank is one of the few online lenders which are founded entirely with private investment. As the government encourages changes in China's largely state-owned finance industry, MYbank has sought to expand its services to include more small businesses underserved by those traditional financial institutions.
Before the fundraising, Ant Financial owns a 30% stake of MYbank. Along with Alibaba, Ant Financial has provided MYbank with technologies including cloud-computing expertise, big data, artificial intelligence and facial recognition to facilitate lending, said the president of MYbank.
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