Zomato raises $200 million from Ant Financials

Zomato raises $200 million from Ant Financials

Zomato raises $200 million from Ant Financials

Zomato becomes the latest one to enter the unicorn club with Ant Financials, a subsidiary of Alibaba Group pumping in $200 mn in the company.

Upon closing, the companies will terminate the current profit-sharing arrangement under which Ant Financial pays royalty and technology service fees in an amount equal to 37.5% of its pre-tax profits to Alibaba.

And on Thursday, it strengthened ties with digital payments affiliate Ant Financial, taking a 33% stake in the firm.

Reports revealed that the company's revenue from their third-quarter, which was from October to December last year; the revenue were up from the previous year's figures which were at 79.8 billion yuan to a massive 83.03 billion yuan.

Once dominant in China, Alipay's share of online payments in the country has slumped to 54 percent as of the end of September a year ago amid the rise of Tencent's WeChat (微信) platform, research firm Analysys International said.

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Alibaba's revenues jumped 56 per cent year-on-year to $12.8bn (£9bn) in the final quarter of 2017. We have summarized Alibaba's Q3 FY'18 results on our interactive dashboard, where you can also change expected revenue and EBITDA margin figures for Alibaba to gauge how it will impact the company's forecast earnings for 2018.

CEO Daniel Zhang described the deal as enabling Alibaba and its shareholders "to participate in the future growth of the financial technology sector".

Record spending at its Singles Day shopping event helped sales at Chinese e-commerce giant Alibaba surge 56% in the last three months of 2017.

Ant operates the world's largest mobile and online payment platform, Alipay that has 520 million Chinese users and over 200 financial institution partners in China. The great quarter figures were also pushing the doubts and speculation that Alibaba is slowing down due to the growing market. Launched in 2004, Alipay now has over 520 million active Chinese users and over 200 financial institution partners in China.

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