Fintech

KKR scrapes second-rate return out of First Data

18 January 2019

After a long 12-year investment in the payment processor, a sale to Fiserv sets the stage for a profitable exit. It’s a wonder the $29 bln buyout survived the financial crisis, considering the debt and multiple CEOs. Anything better than breaking even amounts to a win.

Last deal for First Data carries late-cycle risk

16 January 2019

Fiserv’s $22 bln all-stock acquisition of the transaction processor at a 30 pct premium comes with plenty of cost savings. Revenue synergies would be icing on the cake. But as with KKR’s toppy leveraged buyout of First Data in 2007, market turns can undermine M&A logic.

Blockchain will finally make itself useful

31 December 2018

The distributed-ledger technology associated with bitcoin is due a breakthrough in 2019. Banks and companies are gradually applying versions of it to tasks like settlement. Demonstrating blockchain’s utility, though, will say little about the value of cryptocurrencies themselves.

Korean unicorns gallop into the limelight

14 December 2018

Payments app Toss is the latest of a handful of local startups to secure a $1 bln-plus valuation, after fundraising led by U.S. investors. A wealthy, tech-savvy market is nurturing a new breed of tech firms that can stand out abroad too. SoftBank and others are taking notice.

Chinese phenom Pinduoduo has some explaining to do

15 November 2018

The $19 bln favoured e-commerce site for frugal “aunties from Wuhan” is inflating its top line and understating its costs, alleges short-seller Blue Orca. If true, the charges are damning and threaten PDD’s superlative as the fastest-growing internet seller on the planet.

Payment stars are victims of their own growth hype

14 November 2018

Amsterdam’s Adyen and Munich-based Wirecard lost 3 bln euros of market value despite the German group upping its targets. A trigger may have been Adyen’s non-inclusion in a big index. Still, companies priced for years of rapid growth are most vulnerable late in an economic cycle.

EU tech’s unholy alliance takes shape in Lisbon

12 November 2018

Europe is tackling the deficiencies that made it a digital also-ran, like lack of talent and funding. Yet vast data hoards and market share still give U.S. giants like Google a massive advantage. Policymakers at last week’s Web Summit in Portugal seemed eager to close the gap.

SoftBank mobile IPO confronts Alibaba history

5 November 2018

Masayoshi Son’s $85 bln group quintupled profit in its latest half-year results, and the telecom unit did well ahead of a planned market debut. Listing it could help narrow a huge 60 pct discount to where analysts value SoftBank. The Alibaba flotation hasn’t helped much, though.

Signal is patchy for SoftBank’s jumbo IPO

23 October 2018

A mooted $27 bln listing of the mobile unit is key to Masayoshi Son’s vision for the Japanese group but problems are piling up for what could be the world’s biggest IPO. A new rival, high phone fees, and links to Riyadh could all prevent Son dialling up a premium reception.

Monzo traces faint path to digital-banking profit

16 October 2018

The UK startup won a million customers with next-to-no marketing, but keeps most funds at the central bank. CEO Tom Blomfield hopes to make money by selling other companies’ products, like insurance or mortgages, in return for a small fee. The numbers at least work on paper.

Natixis tries on ill-fitting fintech clothes

11 October 2018

The French investment bank may merge its small payments arm with $4.5 bln compatriot Ingenico. That could help its lowly valuation since the sector is rated more highly by investors. Yet struggling Ingenico, whose shares have plummeted on growth concerns, looks an odd partner.

Opportunism rewards China’s secretive deal giant

20 September 2018

Hillhouse has raised over $10 bln for its latest private equity fund, Asia’s largest. It will invest in mature companies and startups, an unusual strategy but suitable for a region where buyouts are scant. Zhang Lei’s returns validate a model rivals are adopting.

Banks give China’s web lenders a second life

19 September 2018

Investors are fleeing the country's $200 bln peer-to-peer lending sector, as Beijing steps up its crackdown. The squeeze has pushed many outfits like LexinFintech to seek more funding from banks. Margins will suffer, but it's a small price to pay for growth.

Meituan Dianping IPO demands a nemesis discount

3 September 2018

As China’s takeaway-to-taxis unicorn seeks up to a $55 bln valuation, former investor Alibaba is intensifying the rivalry. It began a loyalty plan to get customers spending more and brought in SoftBank to back its Ele.me delivery service. Bad blood should be priced into the deal.

Baidu’s core strength exercise is underappreciated

1 August 2018

The $85 bln Chinese search giant delivered 45 pct earnings growth last quarter, having shed a few distractions. The market is still cautious on Robin Li’s big AI plan as economic headwinds loom. But applying machine learning to content delivery - and censorship – should pay off.

The Exchange: Asia’s bubbly entrepreneurs

20 July 2018

Pete Sweeney hits the RISE tech conference in Hong Kong and hears pitches on vegan cryptocurrency, fog computing and big data for shrimp farmers. Trade tensions haven’t dented enthusiasm, but venture capitalists expect a correction to flush the dumb money from the market.

Alibaba’s $2 bln food sale hints at indigestion

17 July 2018

The e-commerce firm is raising new funds from outside investors for its meal delivery arm Ele.me, media reports. This comes just three months after Alibaba took full control of the unit. Rival Meituan's mooted $4 bln Hong Kong flotation might be giving Jack Ma stomach jitters.

SoftBank gets some help tinkering with valuation

12 July 2018

Masayoshi Son’s sprawling operation attracted an investment of over $1 bln from hedge fund Tiger Global. That should help SoftBank narrow its conglomerate discount, as might spinning off the Japanese mobile unit. The massive Vision Fund, though, is a murky hodgepodge unto itself.

Xiaomi IPO will punish bankers twice

9 July 2018

The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.

Viewsroom: Is Silicon Valley getting nervous yet?

4 July 2018

The tech hub is getting squeezed by new policy restrictions amid a looming trade war between the U.S. and China. How is the Valley holding up? Plus: India's state lenders are losing CEOs. Is running these banks into the ground part of the plan?