China: CreditEase Fintech Investment Fund backs three US firms

CreditEase founder and CEO Ning Tang (visual from company website)

China-based CreditEase Fintech Investment Fund (CEFIF) invested in three US startups during the “2017 LendIt USA Conference” in New York, an annual global fintech industry event.

CEFIF on Thursday (March 16) participated in the Series C financing round in Trumid, an electronic trading platform for the bond market; Series B financing round in WeConvene, an online corporate access management ERP provider for capital markets; and Seed Round financing in WorldCover, an innovative peer-to-peer insurance network.

Founded in 2015, CEFIF has a $1 billion in total committed capital that focuses on global growth-stage fintech companies. Its parent firm CreditEase is a leading fintech company in China, specializing in small business and consumer lending as well as wealth management for high net worth and mass affluent investors.

Also Read: China’s CreditEase launches second Israel-focussed fund, hits first close at $32.2m

CreditEase is also a standing committee member of China’s Internet Finance Industry Association, and chairman of Beijing Marketplace Lending Association. Its majority owned subsidiary Yirendai, an online consumer finance marketplace, is listed on the New York Stock Exchange.

CEFIF claims to have formed strategic partnerships with global venture capital investors that cover five sub-segments within the domain of fintech ― such as payments, personal finance, private wealth management, enterprise solutions, and insurance.

The latest investments in Trumid, WeConvene and WorldCover have brought CEFIF’s portfolio of fintech startups to eight. It previously invested in cloud-based buyer-supplier network Tradeshift, auto financial technology platform DYCD.com, and blockchain-based payment application Circle.

Also Read: Chinese lending platform Yirendai makes tepid US market debut

CreditEase founder and CEO Ning Tang said as China is increasingly embracing financial technologies, the fintech investment vehicle is well positioned to continue to address the underserved needs of fast-growing, mass affluent and high-net worth investors.

“We are also expanding our various investment funds to meet demands of our wealth management clients and enable them to take advantage of global investment opportunities while ensuring balanced asset allocation,” Ning added.

CEFIF reported over the past three years, the global fintech sector has experienced tremendous growth, becoming a key destination for venture capital and private equity investments.

Also Read: China Digest: Matrix joins AT Zuche $58m round; IDG invests in CreditEase unit

The total investments in global fintech sector reached $18 billion in the first nine months of 2016.

“Driven by strong investment interests, fintech companies continue to gain significant momentum, capturing greater market share and causing disruption in the traditional financial service sector. There has also been increase in collaboration between banks and fintech companies in the last couple of years,” CEFIF said in its statement.

CEFIF Senior Partner Anju Patwardhan said they expect the Chinese fintech market will continue to grow in 2017 and beyond, as many three to five-year-old companies have grown into large-scale operations.

“We expect many of these to mature into high-quality, mid-to-late stage companies. Similarly, we anticipate a slew of promising early and mid-stage growth companies in the US market, due to the improving climate for investment, as well as the more sustainable development of fintech sector,” Anju said.

Also Read:

Credit China FinTech in talks with ‘multiple’ cos, says more deals coming

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.