Corporates JD.com and Bertelsmann are set to exit China-based e-commerce platform Fenqile in an initial public offering in the US expected to raise $600m, China Money Network reported on Friday, citing local media.
Fenqile operates an e-commerce marketplace that enables customers to pay for products through instalments. It had built a user base of more than 10 million customers as of May 2016.
The company, which began life as an electronics retailer catering to students, has since diversified its customer base and expanded into a range of consumer products including fashion.
Fenqile had raised more than $10m from investors including Matrix Partners when it closed a $100m series B round in 2014 that was led by investment firm DST Global with backing from media group Bertelsmann’s local investment fund, Bertelsmann Asia Investments.
The round, which also featured China Renaissance, Matrix Partners China and K2 Ventures, was followed by an undisclosed amount from e-commerce firm JD.com in early 2015.
The company added $235m in a June 2016 series C round co-led by Huasheng Capital, a subsidiary of investment banking firm China Renaissance Partners, and venture capital fund CoBuilder Partners.
Fenqile’s main rival in China, Qufenqi, is reportedly seeking to raise between $500m and $800m in its own US offering, according to reports in November 2016.