Beijing-based Huizhaofang Network Technology, operator of mobile rent installment service platform Huifenqi, recently announced completion of RMB 230 mln Series C funding from mobile app and smart device developer Liaison Interactive Information Technology (002280.SZ). Li Lei, founder of Huifenqi, said that funds will mainly be used to improve real estate transaction risk control models and to strengthen partnerships with medium- and large-sized businesses.
Huifenqi is a rent installment payment services platform that enables tenants to pay rent to their landlord on a monthly basis. Huifenqi customers can access the service through a mobile platform or a public account on Tencent's (0700.HK) WeChat mobile messaging app. The platform is reportedly in the process of extending its services to enter the supply chain financing business. Huifenqi views itself as a platform to help financial institutions find high-quality loan customers, and as it develops, the platform intends to bring together more intermediary institutions and subletters to help them reach potential customers.
In June 2016, Huifenqi announced completion of Series B funding from JD.com's (Nasdaq: JD) financial services subsidiary JD Finance. In July 2015 the company completed RMB 35 mln Series A funding led by Source Code Capital and online P2P financing platform Yinker.com.
Editor's Note: In China, rent is generally paid in 3-month blocks, so being able to pay on a monthly basis essentially constitutes installment-based payment. In addition, when first signing a rental agreement, the tenant must pay not only the first 3-months' rent, but also a one-month security deposit, and, in some cases, a further one month's rent to cover the real estate agent's fee (in other cases the landlord pays this), so services such as Huifenqi helps finance tenants who might be unable to come up with 5-months' rent up front. For more information on this topic, please see "JD Finance Invests in Rent Installment Platform Huifenqi," MD 6/13/16 issue.