Alibaba Finance, the financial affiliate of Alibaba Group, planned to spearhead foray into P2P industry by investing $35 million in P2P lending platform Ppdai, according to people familiar with the matter (report in Chinese).

Although neither of the company confirmed the news yet. Chen Dawei, head of Alibaba Small and Micro Financial Institute, previously said that Alibaba will explore P2P industry when the default rate of this sector is lowered. “There is no restricted zone for us and our top priority is to cater for the needs of micro and small enterprises” said Peng Lei, CEO of Alibaba Finance, last week.

Ppdai has established a dedicated department for the lending services of Taobao retailers. Since the turnover generated by this department accounts for more than 30% of Ppdai’s total, it may serve as a connection point for the integration of data and business of the two companies.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.