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Fintech Company- Ant valuation is seen falling to $29 billion in a worst-case scenario

The fintech company Ant facing a major push to its revenue growth to the low teens as compared with 30% November 2020. Dragging down its customers, analyst Francis Chan said in a recent report released on Tuesday. Ant’s valuation could drop to $29 billion to $115 billion, from $320 billion previously, assumptions made by the company. 

Ant’s valuation could come to resemble those of banks and other mainstay financial institutions, stated Chan. It is constantly facing a clampdown on all fronts, from online lending to payment, insurance, and wealth management. 

Moreover, other impacts could be on consumer lending units Huabei and Jiebei by their links being removed from Alipay, which has a billion users, stated Chan. It might face more restrictions accessing and using its personal information via credit investigations. It has also needed to lower the balance of its Yu’ebao wealth management service, which jumped 18% in the 1st quarter. 

The analyst also said- Ant’sfuture as China’s fintech giant could be seen by diminished greatness, with or without Jack Ma, who is currently holding a controlling stake in the firm. 

If Ant is analyzed like a traditional lender, even a fast-growing one such as China Merchants Bank Co. Its valuation might not expand further. In the current scenario, the marketplace may assess Ant similar to the MSCI China Financials index. All this implies one thing a value of 186 billion yuan to 245 billion yuan. Let’s see how the further scenario will unfold. 

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