JD Finance, the financial services subsidiary of China-based e-commerce company JD.com, agreed a RMB6.65bn ($1bn) share subscription on Saturday co-led by insurance provider China Taiping Insurance.
Venture capital firm Sequoia Capital and investment firm China Harvest Investments co-led the round with Taiping, while a range of unnamed investors also participated. The deal values JD Finance at approximately $7.1bn and is expected to close within the first half of this year.
Launched in 2013, JD Finance serves as JD’s financial technology platform. Its competitors include Ant Financial, the financial services affiliate of e-commerce firm Alibaba, which was reported earlier this month to be raising a $1.5bn round.
JD.com itself floated in May 2014, raising $1.94bn in an initial public offering that valued it at $23bn. The company’s backers included internet company Tencent and software technology provider DST Global, among others.
Shengqiang Chen, chief executive of JD Finance, said: “Since its launch in 2013, JD Finance has built one of the most trusted financial technology platforms in China.
“With our top risk management technology and the additional expertise from our investors and partners, we look forward to significantly expanding JD Finance’s service offerings and market reach.”