China-based P2P lender Furongbao has reportedly closed its Series B round on $120.6m from an unnamed investor.
The strategic investment came from an unnamed controlling shareholder of Chinese household appliance manufacturer Wanjiale Gas Appliances, according to a report by China Money Network. The article states the investor engages with electricity transmission a distribution equipment.
Furongbao is an online peer-to-peer lending platform that enables SMEs or consumers to raise a loan or invest into others. Users can set the expected annualisation, investment period, and the amount they wish to receive, with limits of up to 1 million yuan ($150,000). Investors can start backing campaigns from as little as 100 yuan ($15).
Proceeds from the round will be used to upgrade its logistics financing and consumer financing solutions, the article said. Capital will also be put towards research and development and improving internal risk control.
Marketplace lending was the second biggest sector for funding in China’s FinTech space last year, according to data by FinTech Global. Of the $2.4bn that was invested into Chinese FinTech companies in 2017, around 35 per cent was given to companies in marketplace lending.
Earlier in the week, China Merchants Group reportedly teamed up with an unnamed London-based firm to launch a $15bn technology-focused fund. The China New Era Technology Fund is set to invest a significant amount in China-based technology companies, with Chinese groups already supplying up to $5.9bn to the vehicle.
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