Benzinga | Nov 24, 2021 09:08AM EST

Alibaba Faces Another Setback As Ant's Major Investor Slashes Valuation: Reuters

* U.S. private equity firm Warburg Pincus, a major global investor in Alibaba Group Holding Ltd (NYSE:BABA) backed Ant Group, slashed its valuation of the Chinese fintech by 15% to below $200 billion, Reuters reports.

* Warburg also changed its valuation methodology, citing "regulatory developments and the impact of ongoing restructuring."

* Concerns also loom over the revival of Ant's botched-up mega IPO over uncertainties associated with Ant's revamp of its payments-to-loans business.

* Warburg was a prominent investor in Ant's 2018 private fundraising.

* The report added that Warburg cut Ant's valuation to $191 billion in September from the $224 billion in June, falling short of $315 billion valuations touted during its IPO.

* Related Content: How Alibaba's Ant Group Proposes To Revive Its IPO?

* Price Action: BABA shares traded higher by 0.25% at $134 in the premarket session on the last check Wednesday.