Chinese fintech Rong360 targets $200m US IPO for subsidiary Jianpu

Photo credit: NASDAQ

Jianpu Technology Inc, a wholly-owned subsidiary of Chinese fintech firm Rong360, has filed for a $200 million IPO in the US.

Goldman Sachs, Morgan Stanley and JP Morgan are bookrunners for the deal, according to a stock exchange filing.

Jianpu’s move follows Chinese micro lender Qudian, which raised $900 million through its IPO on NYSE, exceeding the $750 million target.

Founded in 2011, Jianpu claims itself as the leading open platform for discovery and recommendation of financial products in China, measured by the number of loan applications and credit card applications over the past five years.

The platform enable users to obtain personalized search results and recommendations that are tailored to their particular financial needs and credit profile. It also provides financial service companies with tailored data, risk management and end-to-end solutions.

The parent firm, Rong360, is backed by venture capital funds through its four fundraising rounds since inception, totaling $186 million. Investors included Lightspeed Venture Partners, KPCB, Sequoia Capital, Pavilion Capital, Sailing Capital and Yunfeng Capital.

Jianpu said its revenues last year increased by 112 per cent compared to 2015 to reach $52.6 million in 2016, while net loss in the period decreased by 7.2 per cent to $26.9 million.

In the first six months of 2017, revenue rose 170 per cent year-on-year to $58 million, and net loss declined by 53.2 per cent to $7.2 million.

“The retail consumer finance market in China is underdeveloped due to a lack of credit infrastructure,operational efficiencies and risk management and technological capabilities of financial service providers,” Jianpu said in the listing prospectus.

However, the company also cited data showing the industry is evolving. The transaction in the online lending market grew from $103.3 billion in 2012 to $914.5 billion in 2016, and is expected to grow to $1.58 trillion in 2017 and $5.96 trillion by 2020.

There are significant opportunities across the value chain connecting users and financial service providers including online sales and marketing, data and risk solutions, IT solutions and loan servicing, it said.

This market witnessed a CAGR of 39.5 per cent over the past five years, and is projected to reach $246.3 billion by 2020.

Also read:

China’s consumer lender Qudian raises $900m in U.S. IPO

China’s top anime streaming site Bilibili plans to raise up $200m in US 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.

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

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  • 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. 
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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.