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China Development Bank joins angel round for P2P lender
China’s economy may be in the doldrums but its appetite for peer-to-peer (P2P)lenders sure looks stronger than ever.
According to China Money Network, state-backed behemoth China Development Bank (CDB) has just joined a $34 million angel round for Kaixindai Financing Services.
How much it invested in the firm was not disclosed, and neither were the identities of CDB’s co-investors, and neither was anything about the identities of CDB’s co-investors, other than the fact they are from Jiangsu province. What we do know though is that Kaixindai, a Jiangsu-based P2P lender, was created by the provincial government and CDB back in 2011, and that it has racked up nearly $2 billion in transactions since then.
It apparently plans to use the proceeds from the round to expand into other areas in China, a tall order for most given that there’s nearly 2,300 P2P companies fighting for their share in the region.
With backing from the state however, something tells me Kaixindai is going to do fine.
Photo: uberof202 ff