Chinese online P2P lender X Financial has filed for an initial public offering in the US seeking to mop up to US$250 million, according to its IPO prospectus.
X Financial was founded in 2014 by Tang Yue, a serial entrepreneur who co-founded online travel service company eLong Inc. and Chinese private equity fund Blue Ridge China. X Financial provides personal financial services based on mobile internet and big data in China. Its products include a P2P lending platform, credit card loans and wealth management products.
The company generates revenue primarily from the fees it charges for service of matching investors with borrowers. In 2017, it booked a total net revenue of RMB1,786.9 million (US$270.0 million), representing a 676% growth, compared with RMB230.3 million in 2016. It recorded a net income of RMB339.5 million (US$51.3 million) in 2017, besides a net loss of RMB120.2 million in 2016.
Hong Kong conglomerate Chow Tai Fook Enterprises Ltd. is one of X Financial’s major shareholders, controlling 10.7% stake in the company.
In 2017, the company raised RMB1 billion (US$146 million) series B round from Suzhou Gold Mantis Construction Decoration Co., real estate developer Shanghai City Holdings and healthcare retailer Bonian Kangcheng Healthcare Management.
However, the company may not be well received by investors after many Chinese P2P lenders collapsed in recent months. China Money Network previously reported that in just 12 days between July 2 to July 13, a total of 71 P2P lending platforms collapsed, suspended cash withdrawals, faced management issues, stopped operation or liquidated.