VCs back China female-focused consumer finance start-up
Shanghai Mime Financial, a consumer finance platform targeting the young females in China, has raised a Series C round led by domestic investors Haier Capital, Xiyu Capital and Panda Capital.
The investment round amounted to hundreds of millions in renminbi. Other investors include Shunwei Capital Partners, Everbright Zhongying Capital and an investment fund under domestic big data platform TalkingData, a statement said.
Mime Financial was founded in 2014 by Mengjiao Song, who previously worked in China Merchants Bank’s credit card risk control department. The company provides lifestyle-related consumer loans to women through cooperative arrangements with offline merchants and financial insitutions.
Meme Wallet, Mime’s flagship product, allows consumers to purchase cosmetics, luxury goods, education courses, and beauty services online, paying in installments. It has more than 1.3 million users and has facilitated over RMB4 billion ($580 million) worth of transactions up to date.
The company also claims to be the first consumer finance start-up to enter the medical cosmetic surgery industry, building up a 50%-plus market share.
Mime previously raised a Series A round from Chinese smart phone maker Xiaomi and Panda Capital in 2015. Last year, it secured approximately RMB100 million in Series B funding led by Xiyu Capital, with participation from Shunwei Capital. The latest round will be used to develop big data and data analysis technology, and to provide customized credit solutions to customers.
Individual consumer credit in China reached to RMB22.6 trillion last year, representing 30% of GDP and 14% of aggregate credit, according to Everbright Zhongying, a growth-focused PE fund of China Everbright. However, the penetration rate remains low compared to developed markets such as Europe and the US.
Other consumer finance startups target different segments of the sector. For example, Qufenqi and Fenqile allow users to buy consumer electronics online and pay in installments. Both companies have received substantial PE and VC funding.
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