Chinese business-to-consumer e-commerce platform JD.com is seeking a new round of financing for its subsidiary, JD Finance, according to a report.
Chinese online media outlet Yicai reported Sunday that JD Finance was raising an unknown sum of funds, which would value the fintech company at 50 billion yuan and would pave its way to the country's A-share market.
A JD Finance employee told chinadaily.com.cn that the company will, for the time being, not respond to such information as the company could not confirm its source, but will surely disclose when there is accurate information.
JD Finance, which was established in September 2012 and has been operating separately since October 2013, completed 6.65 billion yuan Series A funding in January 2016, at a valuation of 46.65 billion. Funding was led by Sequoia Capital China, Harvest Capital Management, and China Taiping Insurance Holdings.
JD.com disclosed on Nov 15, 2016, that the company will start an overhaul of JD Finance to turn it into a company funded by Chinese capital to facilitate its business at home. After the overhaul, JD.com will gain 40 percent of pre-tax profits or 40 percent of equities on condition that this is in line with regulations.
Earlier reports said that JD.com's chairman Liu Qiangdong would buy back shares to have decisive voting rights on JD Finance, but the employee did not confirm this.
Liu said in January 2016 that JD.com will establish at least two listed companies over three to five years.
(Source: China Daily)
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