Ma’s secret money printer: Startup generates $ 2 billion in profits in a quarter, is valued more than Goldman Sachs and Morgan Stanley combined.

Tram Ho

According to Bloomberg, Jack Ma’s Ant Financial branch generated $ 2 billion in profit in the last quarter of 2019. The main driver of this prosperous business result was the supply of electricity services. Cloud computing for local banks.

Specifically, according to Bloomberg’s record, Ant Financial made $ 721 million in profits for Alibaba in the last quarter of 2014. Based on the 33% stake that Alibaba holds in this group, it can be calculated. Ant’s profit is estimated at about $ 2 billion. Ant’s representative declined to comment.

Cỗ máy in tiền bí mật của Jack Ma: Startup tạo ra 2 tỷ USD lợi nhuận trong 1 quý, được định giá lớn hơn Goldman Sachs và Morgan Stanley gộp lại - Ảnh 1.

Ant is currently valued at $ 150 billion, which is bigger than both Goldman Sachs and Morgan Stanley combined. Initially, the company entered the banking sector as a “market disrupter”, frightening 4,500 banks in China. But over the past two years, Ant has come up with the idea of ​​a new business, turning Chinese banks into customers, providing them with cloud infrastructure.

Ant’s extensive network is currently used by more than 900 million users, enabling state banks to reach customers who need capital in remote areas. On the one hand, Ant still has a branch operating as an online bank, and it is expected to provide consumer loans of nearly 2 trillion yuan by 2021, or three times the level of two years ago.

MYbank is a key part of Ant’s open banking strategy – consisting of a consumer lending platform and a technology corporation that sells cloud services and other infrastructure to lenders. Ant expects to generate 65% of revenue from these services in 2021, up from 35% in 2017.

Alipay is also an important business for Ant. Alipay handles more than 200 million transactions a day, from everyday purchases like vegetables and taxi tickets to even unexpected activities like giving money to temples. Alipay now almost dominates the online payment market in China with three important features: fast speed, cheap price and extremely safe.

Generally once a customer’s money has been transferred from a regular bank account to Alipay-style digital wallets, it will never return, ” said one expert.

In general, in China now, Ant is becoming a powerful force. The company handles more payment transactions than Mastercard, controls the world’s largest money market fund and is lending money to about 10 million people. Ant is currently the largest fintech company in the world, making innovations that make it easier for people to use their phones to buy insurance like buying vegetables and helping millions of people go to work every day. need to use physical cash.

Ant dates back to around 2004 when Alibaba created Alipay to make it easier to shop on their online platforms. At that time, Taobao platform – connecting buyers with their 3rd party sellers was very popular, but the payment was still not safe and reliable.

Ma didn’t mind that China didn’t have a management structure for non-bank payment companies at the time, and he still urged his colleagues to implement the project with the promise: “If someone need to go to jail for this, he will be me. ”

Ant is currently exploring the possibility of an IPO, and they have not yet decided the exact time and location.

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Source : Genk