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Dianrong, P2P Funding Service Founded by Lending Club Co-founder, Books Tens of Million Dollars from Northern Light
Dianrong, a peer-to-peer funding service, secured tens of millions of dollars in Series A financing from Northern Light Venture Capital (source in Chinese). The company is cofounded by Soul Htite, co-founder of Lending Club, and Guo Yuhang, an experienced lawyer in intellectual property and venture capital sector.
Launched in March this year, the turnover of Dianrong amounted to more than 100 million yuan ($16.52 million) with over ten thousands of registered users as of November.
Giving priority to risk control and platform security, Dianrong integrates the system and management experience of Lending Club with local market conditions. In addition, the company also launched cooperation with state-backed China Orient Asset Management Corp.
The market size of Chinese P2P industry range between 20 billion to 40 billion yuan and developed at a staggering annual growth rate of 300%. Yang Ruirong, board member and general manager of Northern Light, expects P2P lending sector to boom in future five to ten years. He is also bullish on the execution powers of the impressive management group.
P2P lending comes under spotlight as one of the development directions for financial innovation. But it is haunted by a raft of problems, such as lack of regulation and high default rate.