CreditEase's online P2P lending unit files for US IPO

The filing does not indicate the size or pricing of the offering.

CreditEase was founded by former investment banker Tang Ning in 2006. It started as a bricks-and-mortar operation, linking individual lenders to small-scale borrowers, typically the rural poor, salary workers and urban micro-entrepreneurs.

The company has expanded quickly and now offers a range of consultancy services, including wealth management, with a nationwide network covering more than 100 cities and 20 rural locations. It received investment from IDG Capital Partners, Morgan Stanley Private Asia and KPCB. 

CreditEase moved online in 2012 under Yirendai.com. The platform connects investors and individual borrowers, charging transaction fees and service fees on both sides. It claims to provide investors with attractive returns with investment thresholds as low as RMB100 ($16). Investors have the option to select specific loans or use an automated tool that identifies loans with a basic targeted return.

Yirendia also offers risk reserve fund services, with a view to limiting losses from borrower defaults. Investors can exit their investments in an online secondary market before the underlying loans become due.

The unit completed a carve-out from CreditEase to become an offshore entity in the first half of this year, although it's still majority-owned the parent company.

The online platform facilitated loans to about 40,000 borrowers in 2014, up from 3,500 in 2013. In the first half of this year, it had more than 62,000 borrowers. Total loans transacted through the marketplace came to RMB2.23 billion last year, compared to RMB258 million in 2013.

The company reported revenue of $31.9 million last year, up from $3.1 million in 2013. It made net losses of $8.3 million and $4.5 million in 2013 and 2014, respectively.

Morgan Stanley, Credit Suisse, China Renaissance and Needham are the underwriters for the offering.

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