China’s Meiliche Jinrong raises another $38m

The investors include CreditEase Financial Industry Fund, Delta Capital, TH Capital, and Beijing Heju Investment Management. The company raised $92 million in an initial Series B round two months ago, led by local agribusiness player New Hope Group.

Meili Jinrong was established in 2015 when online peer-to-peer lending platform Yooli spun out its second-hand car financing business. It subsequently received funding from Bertelsmann Asia Investments, Morningside Venture Capital, SBCVC, and JD Finance. The parent company has since developed an installment payment platform that allows consumers to buy electronic products, while auto financing falls under the Meiliche Jinrong brand.

The auto finance platform provides loans for consumers to buy new and second-hand cars through partnerships with car dealers and financial institutions. At present, its operation covers 330 Chinese cities and it has so far issued a total of RMB25 billion in loans.

“The new car and used car market has become increasingly active in recent years. Compared to developed countries, China’s auto finance penetration rate is still relatively low,” said Yu Cong, a managing partner at CreditEase Financial Industry Fund, in a statement. “Meiliche Jinrong combines financial technology with automotive financial services, providing consumers with efficient services as well as managing financial risks effectively.”

Companies operating in the online auto finance space include Chedai, which received a $52 million Series B round last year, and Yixin, the VC-backed online financing subsidiary of Chinese automobile portal Bitauto Holdings. Yixin raised HK$6.77 billion ($867 million) in a Hong Kong IPO in November.

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• Topics
• Greater China
• Financials
• Early-stage
• Technology
• China
• TMT
• Venture
• automobiles
• CreditEase