Two firms based in Hong Kong, alternative investor Pacific Alliance Group (PAG) and China-focused Primavera Capital Group, led a recent Series C funding round for China’s Dashu Finance, a provider of unsecured loans to individuals as well as small and medium-sized enterprises. A third financial services company in Hong Kong, China Everbright Limited, and Sequoia Capital China, a Beijing-based unit of US-based venture capital firm Sequoia Capital, also participated in the local-currency package, which was worth a total of USD 117 million. Neither the sizes of the equity stakes nor the amounts invested by each firm have been released.
Since it was established in 2014, Dashu Finance has issued 60,000 microloans worth approximately USD 30 million in local-currency. The firm, which has 17 office locations, specializes in “credit analysis based on big data, a method traditionally applied only to credit card loans and micro loans.” It also provides analytical tools to banks that lend to small enterprises. Dashu Finance reports a non-performing loan rate of 2.3 percent.
By Ryan Gauthier, Research Associate
Sources and Additional Resources
China Money Network:
https://www.chinamoneynetwork.com/2017/07/07/pag-primavera-lead-117m-round-in-online-unsecured-loan-lender-dashu-finance
PAG:
http://www.pagasia.com/en/
Primavera Capital Group:
https://www.primavera-capital.com/
Sequoia Capital:
https://www.sequoiacap.com/china/en/
China Everbright International:
http://www.ebchinaintl.com/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/
Similar Posts:
- MICROCAPITAL BRIEF: Joliba Capital Raises $58m in Equity from FMO, IFC, Proparco to Support SMEs, Mid-caps in Central, West Africa
- MICROCAPITAL BRIEF: FMO Committing $30m to South Asia Growth Fund III to Support Equity Placements in Businesses Reducing Environmental Impacts, Mainly in India
- MICROCAPITAL BRIEF: AIA Commits $200m to LeapFrog Investments Seeking Positive Social, Environmental Impact
- MICROCAPITAL BRIEF: G20, SME Finance Forum Showcase Digital Finance Solutions for MSMEs Via Online Database, Seek Submissions
- MICROCAPITAL BRIEF: Baobab+ Borrows $1.3m from Oikocredit to Boost Household Access to Technology, Solar Energy in Rural Côte d’Ivoire