MyBank, a China-based online lender spun off from e-commerce group Alibaba’s financial services affiliate, Ant Financial, is seeking RMB6bn ($871m) in funding at a $3.5bn valuation, Bloomberg reported yesterday.
Ant Financial and another existing shareholder, conglomerate Fosun International, are among those considering a commitment to the round, a source told Reuters, though both corporates declined to comment.
Founded in 2015, MyBank operates an online lending platform that uses artificial intelligence to analyse more than 3,000 variables and tap into existing databases such as those held by Ant Financial or the government’s social credit score in order to assess creditworthiness.
The service targets business owners as well as micro and small enterprises, types of client that have traditionally struggled to secure loans as they lack appropriate collateral.
The company has issued loans to some 16 million clients to date, with the average loan sized at approximately $3,800. It is expected to use the prospective funding to strengthen its ability to lend to small businesses.
The round would constitute the first external funding effort by MyBank. It was formed by Ant Financial, which currently owns 30%, and Fosun, which holds 25% through its Shanghai Fosun Industrial Technology Development subsidiary.
Automotive components manufacturer Wanxiang has an 18% stake in the company while asset manager Ningbo Jinrun Asset Management owns 16%. The identity of the investors holding the remaining 11% could not be ascertained.
MyBank received $644m in funding from the above backers ahead of its launch in 2015.
