The consumer finance unit of China’s Ant Group will increase its registered capital to RMB 18.5 billion ($2.62 billion) from RMB 8 billion previously, in part by taking on new investors, underscoring a step forward for the fintech giant’s years-long revamp, reports Reuters. Ant will invest RMB 5.25 billion as part of the capital injection to retain its 50% stake in the unit, Chongqing Ant Consumer Finance Co Ltd, according to an exchange filing made by the unit’s minority shareholder Yuyue Medical on Monday.
Among the new investors is Hangzhou Jintou Digital Technology Group, which is controlled by the local government of Hangzhou city, home to Ant’s headquarters. It will invest RMB 1.85 billion to become the second biggest shareholder with a 10% stake, the filing showed.
The planned capital increase would be a significant move for the unit, which has been under regulatory pressure to fold into itself Ant’s two lucrative micro-loan businesses, Jiebei and Huabei.