JD Finance invests in VC-backed Meili Jinrong
JD Finance, the financial subsidiary of Chinese online retailer JD.com, has invested an undisclosed sum in Meili Jinrong, a peer-to-peer (P2P) online lending platform with a focus on consumer finance. Both companies are backed by several VC investors.
Subsequent to the investment, JD Finance and Meili Jinrong will focus on providing online financing for second-hand car buyers.
The strategic cooperation will enhance Meili Jinrong's risk control systems through leveraging JD Finance's existing database and credit ratings system. It will also increase transaction efficiency as Meili Jinrong will be integrated into JD Finance's mobile platform, Yannan Liu, founder of Meili Jinrong, told Tencent QQ News.
Liu, formerly of Merrill Lynch and TPG Capital, also co-founded P2P lending site Yooli.com in February 2013. The start-up received backing from Morningside Ventures and SoftBank China Capital.
Last September, Liu spun out Yooli's second-hand car financing business and set up Meili Jinrong. Two months later the company received a $65 million Series A round led by Bertelsmann Asia Investment (BAI). The car financing service now covers 27 Chinese cities and faciliates more than RMB2.5 billion in loans.
In addition to lending to car buyers, Meili Jinrong covers purchases of 3C products (computers, communication and consumer electronics) and home rentals.
Earlier this year, JD Finance raised a RMB6.65 billion ($1 billion) funding round led by Sequoia Capital and China Taiping Insurance. Operating much like Alibaba Group's Ant Financial business, the company is looking to leverage JD.com's technological experience to disrupt traditional financial services.
JD.com has also backed Chinese installment payment platform Fenqile.com, data analysis providers Juhe.cn and ChinaScope Financial, as well as US-based risk assessment online start-up ZestFinance.
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