AAA HBCF banks on Du Xiaoman for $65m

HBCF banks on Du Xiaoman for $65m

Duxiaoman Chongqing Technology, a subsidiary of internet group Baidu’s financial services spinoff, Du Xiaoman Financial, has invested RMB450m ($65m) in China-based online lender Harbin Bank Consumer Finance (HBCF).

The deal was conducted last month but only disclosed yesterday, through a regulatory filing. It gave Duxiaoman a 30% stake in HBCF.

HBCF is a consumer finance subsidiary of financial services firm Harbin Bank, which established the unit in 2016 after it secured regulatory approval to offer personal loans.

The company has entered into a strategic cooperation agreement with Duxiaoman and the two will collaborate on products and services in the retail finance, payment and settlement, inter-bank finance, marketing and financial technology spaces.

HBCF has raised $218m in funding to date, according to the aforementioned securities document. Harbin Bank invested $43m when it established the subsidiary, with another $29.8m provided by undisclosed backers at the same time.

Du Xiaoman Financial was originally known as Baidu Financial Services Group before being spun out of Baidu in April 2018.

By Thierry Heles

Thierry Heles is editor-at-large of Global University Venturing and Global Corporate Venturing, and host of the Beyond the Breakthrough podcast.

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