Sequoia backs Chinese online lender Ppdai
Sequoia Capital has invested in a Series A financing round of Ppdai, a Chinese peer-to-peer online lending firm. The capital is expected to expand the company’s capacity on technology infrastructure and marketing campaigns.
Jun Zhang, CEO of the online lender, told Shanghai Securities News that the investment amount was less than the $25 million mentioned by earlier media reports. The transaction was completed in October.
Founded in 2007, the firm claims to be the first Chinese online lender which serves as a bridge linking borrowers and lenders. While Ppdai's service is free for lenders, borrowers are subjected to a commission. The company charges 2% of the borrowed amount for loans with a term less than six months, and 4% for loans with longer period.
In the first half of 2012, total transactions through Ppdai reached RMB180 million ($45 million). Last year, the company recorded full-year trading volume of RMB 280 million.
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