Chinese fintech Yincheng raises $76m Series C round led by GL Ventures, DCM

Source: Eric Prouzet/Unsplash

Chinese supply chain financing platform Jiangsu Yincheng Network Technology Co Ltd has raised 500 million yuan ($76.3 million) in a Series C round led by GL Ventures and DCM.

Other investors include Nanjing Yang Zi State-Owned Investment Group and Nanjing Jiangbei New Area Sci-Tech Investment Group. Existing investors Tangzhu Capital, Huagai Capital, and Matrix China Partners continued to back the new round.

Hong Kong-listed financial advisory firm China Renaissance served as the exclusive financial advisor.

Founded in 2012, Yincheng manages online platforms “tcpjw.com (also known as Tongcheng Piaoju)” and “hchpj.com” to help connect micro, small and medium-sized enterprises with banks, financial institutions to tackle their financing demand and unlock the working capital tied in the supply chain.

It is essentially an online marketplace for commercial paper, a form of unsecured, short-term debt typically issued by a corporation or a large bank for the financing of payroll, accounts payable, inventories, and meeting other short-term liabilities. Maturities on most commercial paper range from a few weeks to months.

In 2020, the firm has facilitated total financing of nearly 2 trillion yuan ($305.0 billion). The financing scale is almost three times that of 2019, it claimed, saving over 4 billion yuan ($610.1 million) for micro, small and medium-sized enterprises in China. It is said to take up about 80% of the Chinese market for online commercial paper transactions.

The fresh proceeds will be used for platform R&D, technological investment, marketing & brand promotion, and expansion of new offerings. It plans to increase its business layout in key areas like intelligent risk control and big data.

In a statement, the firm’s co-founder and CTO Qian Haichuan said over 50% of Yincheng’s employees are R&D professionals in areas including product development, operation, and cybersecurity. The team targets to focus on the usage of artificial intelligence (AI), blockchain, cloud, and big data to offer more intelligent and secured services going forward.

Prior to the Series C round, Yincheng closed a combined 150 million yuan across Series B and B+ rounds in February 2020. Its Series A round was completed in August 2018 at “tens of millions of yuan,” shows its website.

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.