JD’s finance arm plans $1.9b fresh funding, CICC, COFCO potential investors

Photo: Reuters

JD.com Inc’s finance arm is looking to raise about 12 billion yuan ($1.9 billion) in fresh equity that could see its value double from last year to more than $20 billion, three people with knowledge of the matter said.

The unit of China’s second-largest e-commerce firm wants to deepen its push into areas such as securities, banking and insurance – businesses that have seen the entry of several new technology-focused players.

The move adds to an already hectic pace of fundraising by Chinese tech firms keen to respond to burgeoning demand for digital services, especially in the financial sector.

The fundraising by JD Finance kicked off late last year and is expected to be finalised in the coming weeks, the people said, declining to be identified as details of the deal were not public.

Investor enthusiasm for Chinese tech stocks has jumped over the past year. The unit was valued at about 60 billion yuan ($9.5 billion) when it was separated out from its parent in mid-2017 and that valuation has since grown to about 120 billion yuan ahead of the fundraising, the people said.

Potential investors in the new round include China International Capital Corp’s (CICC), Qiyuan National New Industry Venture Capital Guidance Fund, grains trader COFCO and conglomerate China Merchants Group, they said.

JD.com, CICC and China Merchants Group declined to comment. COFCO did not respond to a request for comment.

JD Finance offers online financial services and products including consumer credit and wealth management products. It also owns a few small financial licenses including a third-party payment license in China.

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Reuters

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.