China’s Sina invests $30m in fintech firm Shuhe Technology – Deal Street Asia
What happened: Shanghai-based fintech firm Shuhe Technology has raised $30 million in a Series B from Chinese internet giant Sina Corp. Shuhe provides consumer financial services such as installment repayment plans for credit card holders. Sina said it decided to invest in the fintech company after witnessing strong growth in the market for such services.
The investment will finance enhanced operational efficiency and improved credit card services, according to Shuhe. The two companies will collaborate in various areas including data, traffic, technology, and products.
Why it’s important: Sina, parent company of the popular Chinese social media platform Weibo, has been ramping up its investment in fintech in an effort to catch up with Alibaba and Tencent on mobile payments in China. The company announced a $500 million fund in 2017 to invest in fintech companies. Last year, Sina-backed fintech startup Pintec filed to list in the US.
Founded in 2015, Shuhe now has more than 25 million registered users and has completed over 6.6 million transactions. The firm operates as a unit under outdoor advertising network, Focus Media.