China's VC-backed 51 Credit Card files for HK IPO

The initial prospectus does not indicate the size or pricing of the offering, or whether existing investors will sell any shares. Consumer-focused GP Tiantu Capital owns 14.36% of the company, while financial technology specialist Lingfeng Capital has 1.22%. Online retailer JD.com and smart phone maker Xiaomi have 4.67% and 2.33%, respectively, while A-share listed property developer Xinhu Zhongbao has 15%.

Launched in 2012, 51 Credit Card started as a personal credit card management app that allows users to track credit cards bills and make repayments. As of the end of 2017, the company managed about 106 million credit cards from 81 million users, facilitating RMB108.5 billion ($17 billion) worth of transactions.

With credit data generated from the platform, the company has expanded into consumer loans and wealth management services based on its own credit analytics system. It facilitated more than RMB33.9 billion in consumer loans last year through a peer-to-peer platform supported by individual investors, most of whom are also users of the 51 Credit Card management app.

The company secured a seed round in 2012, and then a RMB32 million Series A round from investors including Crystal Stream Capital and Meridian Capital China in 2013. In 2015, it raised a $77 million Series B round across two tranches. VC investors GGV Capital, SIG and Shunwei Capital participated in the round alongside Xinhu Zhongbao, Xiaomi, and JD.com.

In late 2016, 51 Credit Card received RMB2.57 billion in Series C funding from a group domestic investors, including Tiantu Capital, Qianhai Equity Investment Fund, and Xinhu Zhongbao. Last year, it closed an extended Series C round worth $84 million with contributions from Chinese asset manager Harvest Global Investments, Tiantu Capital, and Intime Retail Group.  

The company reported RMB2.26 billion in revenue – most of which was generated from credit repayment services fees – last year, up from RMB571 million in 2016. However, it still made a net loss of RMB1.38 billion last year, compared to RMB2.23 billion in 2016

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• Topics
• Greater China
• IPO
• Technology
• China
• GGV Capital
• Tiantu Capital
• TMT
• Hong Kong (China)
• Venture