FinVolution posts record high revenue in Q2 as micro-economy booms

FinVolution, a Shanghai-based online finance platform, reported record high revenue in the second quarter thanks to booming online borrowers and a new growth engine fueled by small business owners.

Revenue grew 31.7 percent year on year to 2.38 billion yuan (US$371.8 million). Net profit grew 36.7 percent to 620 million yuan, according to the New York-listed firm.

The company's user base for small and medium-sized enterprises reached 408,000 in the quarter, 12 times that of a year ago. It came with the surging demand and rapid development of the micro-business economy in China.

The company will increase investment and improve services in the sector as a new and strategic growth engine, said FinVolution Chief Executive Officer Zhang Feng.

China supports macroeconomic development as a national policy, which creates jobs and improves daily life.

But many small business owners face financing and capital challenges, especially during the COVID pandemic.

With fintech innovations and various channels, online finance platforms provide support for the micro-economy, covering SMEs and individual business owners. That supports consumption finance and boosts the digital economy.

"Through our platform, users are able to enjoy the convenience of finance at their fingertips, accessing credit lines in a timely and efficient manner," Zhang said.

As a Shanghai-based online finance company, FinVolution will benefit from the city's strategy to become a global financial and tech innovation center.

The rebounding economic environment in China and the great potential of digital technology applications in southeast Asia are catalysts for its future business, said FinVolution.