In December, Dianrong co-founder Guo Yuhang put $10 million of his own money into the company to reassure investors.
With the new investment, the company will increase its registered capital from the current RMB 300 million to RMB 500 million to comply with new rules.
Dianrong announced that it has raised $40 million of funding from Dalian Financial Investment Group.
The company said it will continue to scale back its offline services.
Regional governments have intensified the clampdown on online lenders in recent months.
Shanghai’s financial regulator announced a five-year plan to develop a fintech center on par with competitors around the world.
The number of P2P lending platforms has fallen 59% since the end of 2018.
No specific rules or requirements have been proposed, such as an implementation timeframe.
The company said the decision was made “to fulfill regulatory requirements.”