CICC Capital, Bank of China Group Investment Ltd, CITIC Securities-backed China Securities and CITIC Capital have agreed to invest a RMB13 billion (US$1.9 billion) series B round in Chinese e-commerce giant JD.com’s financial services spin-out JD Finance.
JD Finance said its post-money valuation has reached about RMB133 billion (US$20 billion) and this round is expected to complete in the third quarter in 2018.
In March 2017, JD.com divested all its shares in JD Finance for around RMB14.3 billion (US$2.1 billion), as the Internet finance unit dismantles a legal structure for overseas listing and plans a domestic IPO instead.
JD Finance booked revenues of RMB10.3 billion (US$1.6 billion) in 2017, with a 132.13% growth compared to 2016. Among its four business lines, financial service accounted for 51% of the revenues, payment business, logistics finance and wealth management accounted for 15.49%, 14.52% and 11.91% respectively, according to local media.
Chen Shengqiang, CEO at JD Finance, said the company will expand investment in data and technology, push for globalization and attract more global talents in the future.
In 2016, JD Finance raised RMB6.65 billion (US$1 billion) from investors including Sequoia Capital China, China Harvest Investments and China Taiping Insurance.