GIC Private Ltd., Singapore’s sovereign wealth fund, has led a US$220 million series D round in Dianrong, a Shanghai-based peer-to-peer lending platform.
CMIG Leasing Group, a leasing business unit under China Minsheng Investment Group Co., Ltd, South Korea’s Simone Investment Managers and other institutional and individual investors also participated in the round, according to a company announcement.
Last year, the Chinese government tightened regulations of the P2P lending sector, which has been dogged by scandals and fraud due to loose oversight. Despite the problems, the industry has experienced rapid growth. In 2016, the transaction value of all the P2P platforms reached RMB2.8 trillion (US$410 billion), up 137.6% year-on-year.
Founded in 2012, Dianrong offers loan originations, investment products and marketplace lending solutions. The company claims that it originates US$500 million in loans each month for four million retail lenders.
Last month, it acquired Quark Finance, a Chinese consumer finance and risk management company, to expand its local footprint across China. This March, the start-up also partnered with Hon Hai Precision Industry Co., Ltd. to launch Chained Finance, the first blockchain platform for supply chain finance in China.
"Dianrong’s commitment to technology, transparency and compliance makes it a trusted partner and the right investment for us," said Tang Min, president of CM International Financial Leasing. "CMIG Leasing was impressed by the company’s achievements in fintech and their perfect utilization in the lending business. We believe that the combination of fintech developed by Dianrong and the leasing business will create more value for both industries. We’re delighted to be a part of Dianrong’s future."
Dianrong previously completed a US$207 million series C round from Standard Chartered PLC and China Fintech Fund in 2015. One year prior, it received a series B round, reportedly worth US$10 million, from Hong Kong-based financial services firm Sun Hung Kai & Co., Ltd.