Alibaba now makes its first fintech investment in Hong Kong city
Category: #retail  By Ojaswita Kutepatil  Date: 2017-05-16
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Alibaba now makes its first fintech investment in Hong Kong city

Qupital, Hong Kong’s first invoice discount exchange is all set to take financial technology into a new high, following Alibaba Group’s announcement of their first fintech investment in Hong Kong city. With Alibaba Entrepreneurs Fund and MindWorks Ventures combining to offer the initial capital investment, Qupital has received the first funding amounting to around USD 2 million as of now. This funding will be utilized in enhancing the technology platform which would finally cater to their expansion in the regional market.

Experts vouch that lack of capital has always been a major road block for any business to flourish, especially when it comes to startups and SMEs. This monetary investment of Alibaba in Qupital is expected to resolve the issue to a considerable extent across the Asia Pacific, as it will bridge this financial gap that is estimated to be around USD 200 million. Qupital will allow the companies to convert their unpaid invoices into cash by interconnecting them with hedge funds, professional investors, and family offices. With this revolutionized step, Alibaba, leading player of the retail market in China, has expanded its investment portfolio, showcasing a lucrative business path across the APAC belt. As per the report, China’s sole contribution to FinTech industry will approximately account for USD 3 trillion annually.

SMEs based in Hong Kong went into stagnancy in the recent past years with the conventional slow and bulky processes of traditional lenders. Andy Clan and Winston Wong, the two young co-founders of Qupital, had then recognized the potential of this golden opportunity when they found that many businesses rooted in Hong Kong had their cash locked into unpaid invoices. With the launch of Qupital, many entrepreneurs will get the scope of being a part of the ever-evolving FinTech ecosystem.

Alibaba Groups' interference in the investment process obviously adds up new potential for Qupital as it would offer the company a better customer reach. More importantly, startups and SMEs will provide exciting business avenues to the market as Qupital will allow the inflow of cash into their business when they need it the most. Optimization of a traditional industry with the integration of IoT has been reported to be the ultimate goal of Qupital. In the huge financial gap for underserved SMEs in Asia, which seems to be surging day by day, Qupital has placed itself as a conduit.  It allows investors to access a new set of classes that were primarily being restricted to large institutions only. Qupital, in the coming timeframe, has been predicted by experts to be a dominant player in the FinTech market, as it creates a value for both investors and SMEs, in the true sense.



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Ojaswita Kutepatil

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Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, presently develops content for Market Size Forecasters, Algosonline, and other similar platforms. Having had a prior experience in Business Development and Technical Engineering, she now pens down articles pe...

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