Ratan Tata's RNT to invest $150 mn in Ant Financial Services

Ratan Tata-founded RNT Capital Advisors, a venture fund, which is also backed by University of California (UC), will invest about $150 million in Ant Financial to acquire a 0.1-per cent stake in the private technology company, The Economic Times reported.

The investment by RNT Capital is part of the mega financing round that will take the valuation of Ant Financial Services, the world’s most highly valued private technology company, to $150 billion, the report quoted sources as saying.
Ant Financial Services, an affiliate of Chinese ecommerce giant Alibaba, is expected to raise about $10-12 billion in the latest financing round.
At $150 billion, Ant Financial’s valuation will far exceed that of ride-hailing giant Uber, which is valued at $70 billion.
Ant Financial was valued at $60 billion during its last funding round in 2016.
Tata is reported to be the only Indian investor in the financing round that was heavily oversubscribed, according to the report.
The other investors in this funding round include Singapore’s state investor Temasek Holdings, US private equity giants Warburg Pincus and Carlyle, and Canadian pension firm CPPIB, according to a Bloomberg report.
Alipay, the digital payment product from Ant Financial with 870 million customers, reports mobile transactions worth an average $2.4 trillion every three months, according to a Bloomberg report.
Ant Financial is likely to go for a public offering by next year.
UC-RNT Fund had earlier invested in companies like ride-hailing app Ola, besides its investments in mobile point-of-sales solutions company Mswipe and healthcare startup Curefit.
The proposed investment in Ant Financial will be the first known investment outside India for the UCRNT Fund.
Risk capital investors are of the view that the significance of the investment is the signal it sends, as the shareholding of RNT Capital Advisors is not substantial.