- IPO gives access to a fast-growing, asset-light, technology-led business benefitting from significant network effects
- Dominant Alipay payments franchise helps Ant cross-sell additional financial products to its 1bn+ customer base
- Alibaba link generates strong customer insights. International expansion delivers an additional growth option
Ant Group, operator of the Alipay payments platform and the world’s most valuable fintech company, plans to list on the Hong Kong and Shanghai exchanges. Despite getting drawn into the China-US trade spat, it could potentially rank as the world’s largest IPO and open the door for other fintechs to go public. In this report, available in full for Tellimer Insights Pro subscribers, we touch on the company’s business model, present operational highlights, assess key growth drivers and consider the valuations of peer companies. In follow-up reports, we will dig more deeply into key aspects of Ant Group’s business.
The undisputed industry leader
Ant Group holds a clear leadership position in Chinese digital finance. The firm brings together over 1bn consumers, over 80mn merchants and over 2,000 financial institutions; in the year to June 2020, the firm oversaw RMB118tn (cUSD17tn) digital payments transactions. Ant Group is the market leader across a broad range of digital financial services products:
Payments – largest payments platform by user base
CreditTech – largest online consumer and SMB credit platform by outstanding credit
InvestmentTech – largest investment platform by assets under management
InsurTech – largest online insurance services platform, by premiums generated
Innovation – largest number of blockchain patents
- 1 Weekend Reading/Global MMT: Just an obscure theory or a nuclear rocket leaving emerging markets behind?
- 2 Company Analysis - Commissioned/Iceland Arion Bank: Iceland's tech-savvy capital return story
- 3 Strategy Note/Global SPAC indigestion in the US, and Asia on the march
- 4 Macro Analysis/Nigeria Nigerian naira devaluation and OMO reform still woefully inadequate
- 5 Strategy Note/Global Emerging-Frontier Equity Monthly, February: US yields help Commodities beat Tech