Dianrong recently announced successfully securing $220 million during its Series D funding round. This funding was led by GIC Private Limited. Other participation comes courtesy of Simone Investment Managers, CMIG Leasing, and others.
GIC Private Limited is a private equity fund that focuses on late stage venture investments. They focus on investments in companies related to finance, financial services, and impact investing. Other recent investments include Mergermarket, Pharmaceutical Product Development, NIO, and 5LMeet.
Simone Investment Managers is a privately placed fund management company which specializes in real estate and alternative assets. Simone has also recently invested in TMON, a leading e-commerce company in Korea.
CMIG Leasing is a unit of China Minsheng Investment Group, China’s largest private investment conglomerate. This is CMIG Leasing’s first investment, with China Minsheng Investment Group recently providing funding to Tuandaiwang, a peer-to-peer lending company based in China.
Dianrong launched its platform in 2012 and has since expanded into supply-chain financing by use of blockchain technology. The company looks to grow beyond the Chinese market, which is saturated with thousands of P2P companies. In 2015, the company announced a joint venture with Hanwha Group, a Seoul-based conglomerate, to offer marketplace lending along with other fintech services in South Korea.
More recently, Dianrong launched a partnership in Hong Kong which offers a marketplace for Asian investors looking to buy into United States consumer loans. In July of this year, Dianrong bought Quark Finance, a Shanghai-based asset origination business, to increase the volume of loans in its platform. This added 71 new branches in 47 cities that require automation and upgrades to Dianrong’s technology.
“We're going to increase our risk management capabilities and continue to automate. We're also going to speed up some of the R&D projects,” Co-Chief Executive Soul Htite said. “We also want to keep capital on the side just in case another M&A opportunity appears.”
The firm, based out of Shanghai, plans to use the new funds to automate some of its new branches, expand research and development, and fund potential acquisitions.
Dianrong’s Htite, in an interview with Reuters, explained, “Now we've graduated to another level, so people that know finance are also seeing us as someone that is really going to be part of the finance industry.”
“There are places that we definitely are going to go to, we just need to make sure that we stay on our core strategy, which is China,” Htite added. “We're in talks with partners in these countries already.”
At this time, Dianrong has not decided on an initial public offering, but believes that Chinese individuals should benefit from the growth, where it lists A-shares in domestic markets or goes public overseas.
“No decision has been made on the market, but Dianrong is a company that started in Shanghai, so why should it do an IPO in the U.S.?” Htite said. “That decision is not dependent on Dianrong only. That decision is dependent on, if you're talking about the Hong Kong exchange or New York exchange or A-shares, whoever makes it easier for us to list, we're going to go with that.”