Alibaba’s Ant Group has reportedly committed another SGD 200 million investment into ANEXT Bank, which is its wholly-owned subsidiary and SME digital bank. This, according to media reports from March 25, 2024.
As reported by DealStreetAsia, the digital finance and technology firm had previously committed SGD 250 million into the virtual bank, with the overall investment reaching around USD 502.61 million.
This latest investment is meant to support Ant Group’s ongoing efforts in digital finance based in Singapore as well as the broader Southeast Asian area after it obtained a digital wholesale banking license from the Monetary Authority of Singapore (MAS) back in 2020.
ANEXT Bank has reportedly been posting losses since its inception.
The banking platform has generated nearly a 5x increase in financial losses, from around SGD 6,000 to SGD 33,000 in 2021 and 2022, respectively. This, even though the initiative netted SGD 3,195 in revenue during the latter financial year.
This latest investment is considered to be a key move to make sure that the bank may focus on supporting micro, small, and medium-sized enterprises (MSMEs) as well as enabling financial inclusion.
As of last year, nearly 80% of ANEXT Bank’s Business Account clients are micro-businesses. And 51% of ANEXT Bank’s business loan clients are actually MSMEs.
Ant Group had introduced its Singapore business location back in September 2023. This move is reportedly part of its international strategy.
Eric Jing, CEO at Ant Group, has previously noted that they intend to take advantage of the rise in digital tech adoption in the ASEAN area.