Biz / Tech

Dianrong seeks US$220m in latest round of financing before IPO

Global investors attracted to the online finance firm's need for funds

Online finance firm Dianrong said today that it plans to raise US$220 million from global investment funds in probably its last round of financing before its initial public offering in 2018. 

The series D round funding of Shanghai-based Dianrong attracted investors, led by GIC Private Limited, Singapore’s sovereign wealth fund, CMIG Leasing, Simone Investment Managers and other institutional and individual investors.  

“Fintech firms like Dianrong deliver greater financial freedom to Chinese families and small businesses, “ said Kevin Guo, founder and co-CEO of Dianrong.

The latest capital injection will help Dianrong cope with risk management, research, M&A opportunities and international expansion with partners, said Soul Htite, another founder and co-CEO of Dianrong.

After the investment, Dianrong, with four million users now, will probably seek overseas IPO opportunities in 2018, media reported.

In 2015, Dianrong completed a Series C round funding of US$207 million from Standard Chartered Private Equity, China Fintech Fund, Tiger Global Management and Bohai Leasing.

Although the Chinese government has tightened rules governing online lending firms,  online finance still has “excellent business conditions” on Internet infrastructure, clear regulations and entrepreneurship   requiring capital flow, said industry officials.

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