fintech

Auto Added by WPeMatico

Hong Kong-based fintech startup Qupital raises $15M Series A to expand in mainland China

Qupital, a fintech startup that bills itself as Hong Kong’s largest trade financing platform for SMEs, has closed a $15 million Series A led by CreditEase FinTech Investment Fund (CEFIF), with participation from returning investors Alibaba Hong Kong Entrepreneurs Fund and MindWorks Ventures, both participants in its seed round. To date, Qupital has raised $17 million, including a seed round two years ago, and will use its latest funding to expand its supply chain financing products, launch in mainland Chinese cities and hire more people for its tech development and risk management teams.

CreditEase, which provides loans and other financial services for SMEs in China, will act as a strategic investor, aiding with Qupital’s geographic expansion. Existing investor Alibaba has already helped Qupital reach small businesses on its platform. Qupital will open branches in Chinese cities including Shanghai, Hangzhou, Guangzhou and Shenzhen, along with setting up a new technology center in the Guangdong-Hong Kong-Macau Greater Bay Area for talent and tech development. In total, it will hire about 100 people for its Hong Kong office this year.

Founded in 2016, Qupital offers lending for SMEs that frequently have cash flow issues because they are in a cycle of waiting for invoices to be paid. Qupital’s loans cover most of the value of an invoice, then matches that with investors and funders who cover the cash with the expectation of a return. The company makes money by charging SMEs a service fee that is a fixed percentage of the total invoice value and then a discount fee, and taking a percentage of net gains made by investors.

Qupital has now processed 8,000 trades, totaling HKD $2 billion in value. It won’t disclose how many SMEs it has worked with, but co-founder and chairman Andy Chan says that number is in the hundreds.

Chan tells TechCrunch that in China, Qupital will not compete directly against traditional financial institutions, because it focuses on financing the Hong Kong business entities of Chinese companies in U.S. and Hong Kong currency, instead of onshore renminbi. It will also target SMEs underserved by traditional lenders, by using alternative data sources to determine their creditworthiness.

In a prepared statement, CEFIF managing director Dennis Cong said “The growing volume of SME and cross-border trading drives a huge demand for alternative financing for SME’s who are underserved in the market and opportunities for investors to earn a decent risk-adjusted return. We look forward to working with Qupital to broaden its source of capital base and create unparalleled investment opportunities for CreditEase.”

Grab, the Uber rival in Southeast Asia, is now officially also a digital payments company

 Grab is best known for rivaling Uber in Southeast Asia, but today the company took a major step into becoming a fintech player, too.
That’s because the ride-sharing firm, which recently raised $2 billion from SoftBank and China’s Didi Chuxing, rolled out support for its GrabPay service among third-party merchants for the first time today.
Grab is present in seven markets across… Read More

Powered by WPeMatico

Airwallex raises $13M led by Tencent to bring its cross-border payment service to Europe

 Australia-based cross-border payments startup Airwallex has closed a $13 million Series A round to expand its reach across Asia Pacific and into Europe. The deal was led by Chinese internet giant Tencent — marking its first investment in an Australian startup — with participation from Sequoia China, Mastercard and other undisclosed investors. Airwallex was founded last year… Read More

Powered by WPeMatico

SoFi raises $500 million to expand beyond student loans

TwitterFacebook

Student loans make for big business, but the rest of finance is even bigger. 

SoFi, the company that started by refinancing student loans, will raise a whopping $500 million, it announced on Friday. The Series F funding round values SoFi at $4.3 billion and brings the company’s total equity funding to $1.9 billionBloomberg and the Wall Street Journal both reported SoFi’s huge fundraising plans before the company confirmed the raise. 

With this huge influx of funding, SoFi plans to go global — or “take on new areas of personal finance and new geographies,” the company said. 

More about Fintech, Student Loans, Investing, Sofi, and Business

Powered by WPeMatico

Korea’s AIM raises $1.6M for its mobile trading service

stock trading Seoul-based startup AIM has closed $1.6 million in seed funding to bring its artificial intelligence-powered app for financial investments to market in Korea, and potentially other parts of Asia. The fintech company has developed a system which works alongside existing investment institutions to allow users in Korea to make trades and investments via their smartphone. So rather than a… Read More

Powered by WPeMatico