AAA Dianrong dives into $220m

Dianrong dives into $220m

Dianrong, the China-based online lending platform backed by industrial leasing company Bohai Leasing, raised $220m today in a funding round led by GIC, Singapore’s sovereign wealth fund.

The round also featured CMIG Leasing, a subsidiary of investment holding firm China Minsheng Investment Group, as well as fund manager Simone Investment Managers and undisclosed additional institutional and private investors.

Dianrong runs a peer-to-peer lending marketplace for individuals and small and medium-sized businesses that spans 28 offices across China.

The company will grow its physical presence considerably once it completes the acquisition of banking services provider Quark Finance’s asset origination operations, which was announced earlier this month.

The latest round comes after Dianrong secured $207m in an August 2015 series C round co-led by financial services firm Standard Chartered Bank and investment fund China Fintech Fund with backing from investors including Bohai.

Hedge fund manager Tiger Global Management had invested an undisclosed sum in Dianrong seven months earlier, after venture capital firm Northern Light Venture Capital provided an eight-figure dollar amount of series A funding in 2013.

Soul Htite, Dianrong’s co-founder and CEO, said: “The addition of these distinguished global investors not only validates our past successes, but reinforces our commitment to ‘The New Finance’, which applies fintech to deliver greater financial freedom to Chinese families and small businesses.

“This latest capital injection will help us expand and accelerate these efforts and further drive sustainable and profitable business growth.”

Htite told Reuters in an interview that Dianrong intends to automate some of its new offices, and will put capital toward research and development and, potentially, strategic acquisitions.

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