China: GGV Capital-backed 51 Credit Card raises $119m in HK IPO

A credit card user displays her cards in Washington February 22, 2010. REUTERS/Kevin Lamarque

Chinese online credit card management firm 51 Credit Card Inc has raised approximately HK$931.4 million ($119 million) in its Hong Kong IPO, according to a filing on the Hong Kong exchange.

The GGV Capital-backed company, established in 2012, sold 118.7 million shares at HK$8.50 apiece which was the bottom end of the indicative range of HK$8.5-HK$11.5.

The company intends to use the net proceeds for user acquisition in the next five years through multiple channels, including app stores, search engines, third-party apps, and social media channels.

It will also allocate funds to further enhance its technology and risk management capabilities by increasing the headcount of its research and development and risk management employees by 100 to 300 annually.

“51 Credit Card will also pursue investment opportunities for the next five years that are complementary to the company’s business and are in line with its growth strategies,” the company said.

According to its prospectus, 51 Credit Card saw its revenue jump by close to four times to $342 million in 2017 from $85.9 million a year earlier, with the bulk of its revenue jump from credit facilitation and service fee.

Its net profit was up nearly 1,304 per cent last year, from a year earlier, standing at $112 million. However, it has been operating in a negative cash-flow for the last three years.

The company was founded by Chinese serial-entrepreneur Sun Haitao. It started with a credit card bill management application and progressed to other financial services in the credit card industry and in online investment services.

In 2016, 51 Credit sealed an $84-million Series C+ funding from Harvest Capital and Yintai Group, just a month after it secured $310-million series C investment.

In the same year, 51 Credit has boosted its presence through the acquisition of microloan startup 99fenqi and the launch of 51rp credit card.

According to an Oliver Wyman report cited by 51 Credit Card, the number of credit cards issued in China is set to grow to 1.05 billion in 2021, a CAGR of 15.6 per cent from 2017.

Foreign card companies have been lobbying for more than a decade for direct access to China, which is set to become the world’s No 1 bank card market by 2020, according to research firm GlobalData.

Also Read:

China’s 51 Credit bags $84m series C+ round to build fintech investment fund

China’s PE-backed internet finance firm VCredit raises $152m in HK IPO

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.