Chongqing Ant Consumer Finance — the consumer finance unit of China-based Ant Group — is reportedly planning to raise the equivalent of $1.5 billion in new capital to help it make loans.
That target is lower than the previously reported plans to raise more than $3 billion because a large state-backed investor withdrew from the deal, The Wall Street Journal (WSJ) reported Monday (Nov. 14).
Ant will contribute to the fundraise along with seven other companies, according to the report.
Ant Group did not immediately respond to PYMNTS’ request for comment.
Ant Group formed Chongqing Ant Consumer Finance in 2021, and the personal lending business now has registered capital totaling the equivalent of $1.1 billion, the report stated.
The consumer-finance unit houses two lending services that are offered through Ant’s mobile payments network Alipay. For these services — which are dubbed Huabei and Jiebei and offer unsecured loans to Chinese consumers — Chongqing Ant Consumer Finance can extend credit or make the loans jointly with banks, according to the report.
Ant Group got the green light to launch Chongqing Ant Consumer Finance in June 2021 after being forced to restructure its business after its record-breaking dual public listing was halted in 2020 by Chinese regulators.
As reported at the time, the consumer finance company is the nucleus of Ant’s restructured lending business and can issue consumer loans, borrow from banks and issue bonds.
In addition to the lending and consumer finance products, Chongqing Ant Consumer Finance can also engage in insurance product sales and advisory services and can invest in fixed income and other businesses approved by the China Banking and Insurance Regulatory Commission (CBIRC).
Huabei and Jiebei — are used by almost 500 million people in China.
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