Jul 11, 2018 (China Knowledge) - JD.com's finance arm (JD Finance) has raised at least RMB 13 billion (USD 1.96 billion) from Chinese investors in the form of new shares, doubling the company’s valuation to USD 120 billion before its planned IPO, according to people familiar with the matter.
JD Finance’s latest valuation is about twice its RMB 60 billion valuation after it was split from JD.com in mid - 2017. JD.com is China's second-largest e-commerce enterprise, after Alibaba Holdings.
The large investors in this round of financing include CICC Capital, a wholly-owned subsidiary of China International Capital Corporation Limited, China’s biggest brokerage CITIC Securities, investment firm CITIC Capital and BOCGI - Bank of China Group Investment Limited
JD Finance, established in October 2013, had previously experienced two rounds of financing. Round A financing was completed in January 2016 with a financing amount of RMB 6.65 billion while round B financing took place some 21 months later worth USD 2 billion (equivalent to RMB13 billion).
The fintech company, which was originally responsible for the operation of JD.com’s internet finance business, officially split up with JD.com in mid-2017, which means its financial data is no longer included in JD.com’s financial results and became a domestic-funded enterprise. In May 2018, JD Finance adjusted its structure and divided its division into personal services division and corporate services division.
The 5-year old company provides online financial services and other products including consumer credit and wealth management products.
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