JD Finance, the financial services provider spun off from e-commerce firm JD.com, has secured “at least” RMB13bn ($1.95bn) in funding at an $18bn valuation, Reuters reported today.
The cash came from BOCGI and CICC Capital, respective subsidiaries of financial services firms Bank of China and China International Capital Corp (CICC), private equity group Citic Capital and brokerage firm China Securities, according to people with direct knowledge of the matter.
JD Finance provides a range of financial services including consumer loans, supply chain financing, payment services, crowdfunding and microfinance, insurance, asset management and securities.
The company was formed as an internal division of JD.com in 2013 before insurance firm China Taiping Insurance, Sequoia Capital and investment firm China Harvest Investments co-led a $1bn share subscription in early 2016 at a $7.1bn valuation.
JD.com spun out JD Finance formally in mid-2017 at half the valuation at which it raised its latest funding, selling a 28.6% stake to undisclosed investors for a reported $2.1bn.
JD Finance is considering an initial public offering at some point but has no firm plans, the sources told Reuters, adding that the new funding will be spent on investments in local financial institutions as it looks to obtain banking licences and buy securities.
The round came after Ant Financial, which came out of e-commerce group Alibaba, raised $14bn in series C funding last month, weeks after internet company Baidu spun out its Du Xiaoman Financial subsidiary in a $1.9bn deal.