Chinese fintech solutions firm Sino Fortune Holding Corp has acquired a 4.45 per cent stake in Shenzhen TouZhiJia Financial Information Service Co Ltd (TouZhiJia) for about $2.8 million (RMB19.1 million).
TouZhiJia operates a person-to-person (P2P) online lending and vertical search platform which caters to investors by providing professional and P2P services.
Sino Fortune is an online financial credit facility solution provider that services SME and individual borrowers in China.
Sino Fortune is making the 4.45 per cent equity interest acquisition through Puhui Equity Investment Co Ltd (Puhui).
Puhui made the transaction from certain selling shareholders and 50 per cent of the purchase price has already been paid by Sino Fortune.
The balance of the purchase price is payable upon the closing of the transaction.
Founded in September 2014, TouZhiJia’s main businesses include vertical P2P search engine, private wealth management, and secondary loan exchange services.
TouZhiJia has reportedly accumulated 2.74 million registered users and facilitated 1.98 million transactions with aggregate transaction value of more than $2.30 billion (RMB 15.63 billion). TouZhiJia is an affiliate of Yingcan Group.
Sino Fortune launched in 2013 with its electronic online financial platform that matches investors with SME and individual borrowers in China. It provides investors with access to a liquid secondary market, giving them an opportunity to exit their investments before the underlying loans become due.
Sino Fortune also sets aside risk reserve funds with the aim of limiting losses to investors from borrower defaults.