5 ms·
TLDR: Main reason for the split is conflicts between portfolio companies in different regions (eg Stripe in the US, vs Airwallex in China, vs unnamed in India
by SkyMarshal 3y ago
TLDR: Main reason for the split is conflicts between portfolio companies in different regions (eg Stripe in the US, vs Airwallex in China, vs unnamed in India all going global and competing with each other), and increasing complexity of centralized back-office regulatory compliance operations across these different regions.
- hgsgm 3y agoWhy not merge the companies?
- SkyMarshal 3y agoThe already were one company.
- kalupa 3y agoI suspect the commmenter meant to merge the fin-tech companies ... Although, I'm not sure how that would even work, given international technology competitiveness being intertwined with politics
- SkyMarshal 3y agoYeah, and the founders most likely wouldn’t be interested in that. Merging systems, sharing power, reconciling differences in vision, diluting stake all impossibly complicate option.
- paxys 3y agoThat isn't for investors to decide.
- cj 3y agoWhat I found interesting (in the CNBC article) was that the partners will no longer cross-invest in each other's funds. The 3 units were operating independently already, but there was cross-over in partners from 1 division investing in funds from a different division. After the split, the article explicitly said the partners will no longer invest their own money in the other entity funds. Feels like it's a move motivated by regulation/compliance.