Rumor: JD Finance Solicits RMB 5 Bln in Series A Funding
Ebrun, 12/24/15
Online financing and retail investment platform JD Finance, a subsidiary of Beijing-based B2C e-commerce platform JD.com (Nasdaq: JD), is reportedly preparing a RMB 5 bln Series A funding round with a target domestic IPO in 2017. A spokesperson at JD Finance declined to comment on the rumor. The Series A should include three main investors, one of whom will be Sequoia Capital. JD Finance has a market valuation of RMB 40-44 bln.
Prior to the current rumors, an investment institution's financing project plan for JD Finance was leaked. JD Finance began independent operations in October, 2013, according to the document. The holding company, Beijing Jingdong Shangbo Guangyi Investment Management, would be the target of the current funding. JD Finance plans to list on the Shanghai Stock Exchange's soon-to-be-launched China Strategic Emerging Industry Board in 2017, but if unable to meet requirements for a domestic IPO, the company will consider an overseas listing. If unable to IPO within the next five years, at a minimum there is a guarantee that majority stake holder JD.com will buy it back.
JD Finance has built seven major business modules: supply chain financing, consumer finance, crowdfunding, wealth management services, payments, insurance, and securities.
Keywords: VC financial services IPO funding valuation Series A Sequoia Capital JD.com JD JD Finance Strategic Emerging Industry Board
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