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Exits, News, Venture Capital

Sequoia, Lightspeed China Poised To Exit After Fintech Firm Jianpu Technology’s US IPO

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Chinese fintech company Jianpu Technology Inc.’s debut on the New York Stock Exchange Thursday was a disappointment, with the stock gaining only 5% despite the company pricing its IPO at below its anticipated price range.

Despite the lack-luster debut, the firm’s IPO marks the second successful fintech exit for backers including Sequoia Capital and Lightspeed China Partner I, L.P., after PPdai, a Chinese peer-to-peer lending platform, went public in New York last month. Sequoia Capital and Lightspeed own 17.6% and 16.7% of Jianpu Technology, respectively, as two biggest shareholders of Jianpu, which is a unit of Chinese fintech company Rong360 Inc. Sequoia Capital and Lightspeed are also the top two shareholders of PPdai.

Jianpu’s initial public offering of 22.5 million American Depository Shares (ADS) was priced at US$8.00 per ADS, below its proposed range of US$8.50 to US$10.50. The company raised US$180 million in the IPO.

“Providing financial service platform to match customers’ needs quickly and efficiently based on Internet searches is a valuable business model,” said James Mi, co-founder and managing director of Lightspeed China Partners. Jianpu Technology provides recommendation services on loan products and credit card products. As of the end of June, the company’s revenues reached US$58 million and recorded net loss of US$7.23 million.

Other investors in the company include Sun Flower Information Technology Ltd., JYLu Holdings Ltd. and Spring Bloom Investments Ltd.

Shares of Jianpu Technology closed at US$8.4 per ADS, up 5% compared with its opening price of US$8.25, giving the company a market capitalization of US$1.39 billion.

Jianpu Technology is the fifth Chinese fintech companies that have completed IPOs in the U.S. this year after China Rapid Finance, Qudian, Hexindai and PPdai listed earlier.

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