Zomato raises $200 million from Ant Small and Medium Financials

Alibaba Group is seen at CES Asia 2016 in Shanghai China

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.

Alibaba said it will acquire newly-issued shares from Ant Financial in exchange for certain intellectual property rights.

In its most recent funding round to raise $4.5 billion in April 2016, Ant Financial was valued at more than $60 billion.

The company also announced its financial results for the quarter ended December 31, 2017.

"Alibaba had another great quarter driven by the continued strength of the Chinese consumer and the wide and innovative range of services we provide for merchants and consumers", Alibaba chief executive Daniel Zhang said in a trading update. "This marks the next step in our collaboration to generate more strategic synergies and deliver tremendous value proposition to our customers". Alibaba now gets 37.5% of Ant Financial's pretax profits.

Alibaba said it would take a 33 percent stake in Ant Financial, controlled by Alibaba founder Jack Ma, which had been held as a separate company but part of the Alibaba Group. The move triggered controversies due to the objection of foreign shareholders Yahoo!

The funding round makes the food-tech company amply funded to compete with Softbank-backed Ola which recently acquired Foodpanda India.

Revenue for the third-quarter was RMB 83.03 billion or US$12.76 billion, an increase of 56% from the prior year's RMB 53.25 billion in the same quarter of 2016.

Core ecommerce revenue increased 57 per cent to $11.3 billion and cloud computing revenue jumped 104 per cent to $553 million.

In terms of users, Alibaba continues to see growth domestically, even without continued growth into new markets.

The company's revenue and profit growth was expected to be more sluggish in the coming quarters, as analysts forecast increased competition between Alibaba and rivals such as JD.com and Tencent in the commerce space.

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