Ant financial might increase its stake by 10% in Thailand,s Ascend Money to dominate the online payments industry..
Alibaba Group Holding Limited’s financial affiliate is aiming to purchase a 20% share in Thai organization Ascend Money. This agreement will probably increase the exposure of the Chinese online retailer in the Southeast Asian region. Alipay, a division of the Hangzhou based organization’s affiliate Zhejiang Ant Small & Micro Financial Services Group— called Ant Financial- is also interested in using an option, which would permit it to further add to its stake in the financial service provider to 30%, revealed a statement posted on the China’s Ministry of Commerce website.
On 18th June 2016, the company stated that the proposed investment was conditional on ratification from the Chinese Commerce ministry’s antimonopoly division. The proposal marks Ant financial’s recent move to grow into the Southeast Asian region. Now, the Chinese E-commerce company’s financial arm operates in 70 states and has received a funding of $4.5 billion. Ant has stated it is interested in growing across the globe to permit Alipay’s user base of 450 million for using its online-payments application.
Ascend Money Holding is business division of recently established Ascend Group, which was developed in initial 2015 as it was sold by one of Thailand’s leading telecommunication service providers True Corp. Ascend Group is a subsidiary of huge Thai agribusiness conglomerate Charoen Pokphand Group. The businesses of Ascend Group, ranging from digital marketing to venture capital, electronic payments as well as E-Commerce, have grown to 5 other Southeast Asian states. These include Phillipines, Indonesia, Myanmar, Cambodia and Vietnam.
The public relations office of Ascend Group stated Saturday the CEO of the organization Punnamas Vichitkulwongs had nothing to say regarding Ant financial’s plan to purchase the stake. The Chinese online shopping platform operator has set its transaction volume targets high for the upcoming 4 years, stating by 2020, it wishes to grow its yearly transaction volume to over a sum of $1 trillion. “What I can share with you is that, in four years, we have a very clear goal which is, in fiscal 2020, Alibaba wants to be the first company to have a retail market base scale of over $1 trillion, so that is our clear goal in the next three to four years,” stated CEO of Alibaba Group Daniel Zhang while addressing a conference recently.
The web retailer also estimated a 48% growth for the financial year-end in March, as its executives tried to calm down the concerns of the investors regarding its growth. Despite of the increased rivalry and Chinese sluggish economic growth, the company is yet optimistic regarding its forecast. Executive Chairman and co-founder of Alibaba Jack Ma pointed out in a conference that his organization is about to change how it reports its Gross Merchandise Volume(GMV), since he stated it is not the only standard financial measure to assess the performance of the organization.
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