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.