JD Finance, the financial technology spinoff of China-based e-commerce company JD.com, is seeking $2bn in funding from investors including food processing firm Cofco, China Money Network reported today.
Cofco, also known as China National Cereals, Oils and Foodstuffs Corporation, has entered discussions with JD finance over a lead investment in the round, as has investment bank China International Capital.
The deal is expected to close by the end of this month, and to value JD Finance at $26bn to $30bn, unnamed sources told China Securities Journal.
JD Finance was established by JD.com in 2013 before being spun out in March 2017. It specialises in financial products including consumer credit, wealth management, logistics finance and third-party payment services.
The funding will enable JD Finance to acquire financial licenses and to boost its research and market development activities.
JD Finance was previously reported in March 2017 to be seeking an undisclosed amount of funding at a $7.3bn valuation, though company itself never confirmed that news.
Insurance provider China Taiping Insurance co-led a $1bn share subscription for JD Finance later billed as a series A round by JD.com in 2016. VC firm Sequoia Capital and investment firm China Harvest Investments co-led that round.