Chinese marketplace lender clinches $220m Series D round

Dianrong gets backing from Singapore’s sovereign wealth fund GIC Private Limited.

Dianrong gets backing from Singapore’s sovereign wealth fund GIC Private Limited.

The money is moving in China’s sprawling marketplace lending sector once more. Dianrong, a leading member of the nation’s vast P2P/marketplace lending sector, has closed a $220m Series D investment round. The round was led by Sinapore’s sovereign wealth fund GIC Private Limited, with participation also coming from CMIG Leasing, Simone Investment Managers and others.

It was in 2015 that the People’s Bank of China first began taking steps to clean up its marketplace lending sector. The industry has been hit by a number of blow-ups, most notably when a company named Ezubao was found to have fleeced investors for approximately $7.6bn.

Dianrong, however, has been among the sector’s leading lights. The company last raised capital in a $207m Series C round in 2015. The investors then were Standard Chartered Private Equity, China Fintech Fund, Tiger Global Management and Bohai Leasing. Dianrong is led by Soul Htite (pictured), a former co-founder of leading US marketplace lender Lending Club.

"We are humbled and honored to welcome GIC, CMIG Leasing, and Simone Investment Managers, to the Dianrong family,” said Htite. “The addition of these distinguished global investors not only validates our past successes, but reinforces our commitment to 'The New Finance', which applies fintech to deliver greater financial freedom to Chinese families and small businesses. This latest capital injection will help us expand and accelerate these efforts and further drive sustainable and profitable business growth."

Dianrong recently announced the acquisition of the asset-generation operations of a company called Quark Finance, a deal it claims has tripled its local footprint across China. The company says that it originated $500m in monthly assets for around 4 million retail lenders. It was founded in 2012, and lends to both individuals and SMEs.