Financial terms were undisclosed.
The deal was reportedly worth tens of million US dollars, according to China Money Network.
Alading Bank, launched in 2016, is in the same space as bigger and venture backed players, Wecash and Yongqianbao.
Alading Bank claims the number of users on its platform has exceeded five million and its monthly transaction has reached RMB700,000.
“Alading Bank is a next-generation digital finance company. We believe that the market has huge potential, and we have confidence in the team’s capacity of risk control,” Harry Wan, a partner at Matrix Partners China, said. “The Alading team has great ability in producing a variety of products. We expect that it would become China’s Capital One.”
Alading Bank’s services cover online credit assessment and grant loans to individuals, who can apply through mobile phone number and ID card number and get approval within minutes.
The proceeds will mostly be used to develop its big data capacity and artificial intelligence technologies as well as bolstering the brand.
Recently, Wecash also raised an $80-million series C round led by China Merchants Venture Capital Management, Forebright Capital and SIG. Meanwhile, Yongqianbao secured a $67-million round from Golden Brick Capital Management and CICC Alpha, an investment arm of China International Capital Corporation.