AIBank, a China-based online lender set up by internet group Baidu and financial services firm China Citic Bank, is seeking up to RMB7bn ($1bn) in funding, people familiar with the matter told Bloomberg yesterday.
The company is aiming to secure the capital within the next few months, though discussions are ongoing and details may change, the sources said. Baidu and AIBank both declined to comment.
AIBank was founded as a joint venture between Baidu and China Citic Bank, and offers unsecured consumer loans of up to $43,000 in addition to deposit services and digital wallets for enterprise clients.
The company relies on big data analytics and artificial intelligence technologies to assess credit risk. It secured regulatory approval in early 2017 and launched in November the same year.
Citic Bank owned a 70% stake in AIBank while Baidu held the remaining 30%, as of November 2018. They had invested a combined $288m into the joint venture at the time of its launch before doubling their investment to $576m in July 2018.
