Chinese online marketplace lending firm Dianrong has acquired the asset-origination operations and new credit studio platform of Quark Finance, a financial services and personal loan site based in Shanghai.
The size of the deal is undisclosed.
Dianrong believes Quark Finance’s extensive borrower network will enhance the company’s existing asset-generation capabilities across China.
Founded in 2012, Dianrong claims it originates $500 million in monthly assets for four million retail lenders.
Dianrong founder and CEO Soul Htite, said Quark Finance has been their long-time, trusted business partner and they share a passion for fintech innovation, risk management and transparency.
“This acquisition will complement and enhance Dianrong’s pipeline of personal and business loan assets. It will also help us better serve borrowers and lenders, and drive continued business growth,” Htite said.
Also headquartered in Shanghai, Dianrong serves as a one-stop financial platform for individuals and small and medium-sized enterprises. Its offerings include loan origination, investment products and marketplace lending solutions.
Dianrong also operates 28 technology-enabled borrower service centers in 27 cities in China.
Quark Finance operates 71 borrower service centers in 47 Chinese cities. These centers provide loan underwriting data collection and servicing.
Quark Finance’s new credit studio is a platform that provides data analysis through automated and human interactions to achieve mass-production credit evaluations and processing.
Dianrong disclosed that Quark Finance’s asset-origination employees and offices, including the credit studio platform will transfer to Dianrong upon closing, which is expected in the third quarter of 2017.
“Quark’s affected operations are not expected to change significantly as a result of the acquisition,” Dianrong said in its statement.