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Dianrong, P2P Funding Site Led by Lending Club Cofounder, Pockets Fresh Investment for Market Expansion
Chinese P2P loans service Dianrong today announced it has raised fresh funding from Hong Kong’s leading financial institution, Sun Hung Kai & Co. Limited (SHK), with a view to expansion in Hong Kong and throughout Asia. In addition to the capital, Dianrong also began long-term strategic cooperation with SHK to facilitate its ambitions.
Established by Lending Club cofounder Soul Htite in 2012, Dianrong is a Shanghai-based online lending platform where members can borrow and lend money among themselves at better interest rates than a bank typically offers. The site lends money to both individuals (P2P) and enterprises (P2B), with enterprise loans accounting for 70% of the total, said Soul in a previous interview with TechNode, adding that Dianrong’s average yield is around 14%.
“The combination of SHK’s 45 years of experience in risk management and operations as well as the technology and cost efficiency offered by Dianrong represents a highly promising model for emerging markets. Following what we have accomplished in mainland China, the model is easily portable to Hong Kong and the rest of Asia”, said Soul.
SHK is a leading financial services group specializing in wealth management, securities brokerage and consumer finance with an extensive branch and office network of over 180 locations across Hong Kong, Macau and mainland China.
In cooperation with local listing service 58.com, SHK’s consumer financing service subsidiary United Asia Finance Ltd. announced earlier this year plans to build a peer-to-peer lending platform for local merchants who post listings on the site.
Dianrong has previously raised millions of yuan in angel investment from ZJ Capital in March 2013 and tens of million dollars from Northern Light later in the same year.
Edited by Mike Cormack