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.
In December, Dianrong co-founder Guo Yuhang put $10 million of his own money into the company to reassure investors.
Company co-founder pleads with Chinese regulators to give the sector a ‘ray of hope.’
The company said it will continue to scale back its offline services.
Regional governments have intensified the clampdown on online lenders in recent months.
The number of P2P lending platforms has fallen 59% since the end of 2018.
Regulators are requiring P2P firms to clear outstanding loans within a year.
No specific rules or requirements have been proposed, such as an implementation timeframe.
The company said the decision was made “to fulfill regulatory requirements.”
Amid an on-going regulatory crackdown on China’s online lending sector, many platforms are turning to blockchain for help.