JD.com invests in VC-backed Chinese payment platform Fenqile
Chinese online retailer JD.com has invested in Fenqille.com, a Chinese installment payment platform backed by several VC investors.
The investment was announced on Fenqile's website, although the specific sum committed was not disclosed.
Founded in 2013, Shenzhen-based Fenqile targets college students, allowing them to purchase electronic goods online and pay in installments. Customers can purchase items from e-commerce sites such as JD.com and Yixun.com, and then pay for them through Fenqile by making a down payment and choosing a time period over which to cover the balance.
It recently launched a RMB100 million ($16 million) promotional campaign whereby students can qualify for zero service fees if they choose a 12-month installment plan to pay for digital product priced up to RMB3,000.
The company claims its services cover over 3,000 colleges in over 260 Chinese cities. It has sales centers in 34 cities, including Beijing, Shanghai and Shenzhen, where users can pick up purchased products.
In July last year, the firm launched a peer-to-peer (P2P) lending site Juzilicai.com. While Fenqile lends money to students to buy consumers goods and collects interests on the loans, Juzilicai then packages these debts and sells them as investment products to online lenders.
According to AVCJ Research, Fenqile received its angel round in April 2014 from Matrix Partners and China Renaissance K2 Ventures, and moved on to a Series A round worth $10 million in August. Last December, the start-up scored $100 million in a Series B round led by DST Advisors. Bertlesmann Asia Investment (BAI), Matrix Partners China and China Renaissance K2 Ventures also participated.
Last December, Fenqile's rival Qufenqi secured a reported $100 million Series C round of funding led by BlueRun Ventures. Prior to that, Source Code Capital, Golden Summit and BlueRun invested in a Series B round of funding.
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