The Hangzhou-based fintech firm raised RMB150 million last September in a series B financing round backed by Hakim Co Ltd, a Shenzhen-listed smart building and city services provider.
“It is our first investment in the Internet finance sector and also our largest investment,” said Vision Knight Capital chairman and founding partner David Wei, as quoted by China Money Network.
“As personal credit system is still in early stage in China, the use of automobiles as collateral provides great protection for lenders,” Wei added.
Weidai now gears to use its fresh capital for business expansion, focusing on individual automobile-secured lending to loans where consumers can also use property as collateral.
One of its top priorities is to provide personal loans based on credit and other types of consumer borrowings.
Operating 85 service posts, mostly in Zhejiang, Jiangsu, Anhui and Guangdong province, Weidai reported its monthly transaction value reached RMB85 million last August.
Weidai was launched in 2011 and received series A funding from Grand Capital in 2014. The firm’s loans are generally one-month in maturity with interest rate of around 11 per cent.