China's second largest e-commerce store, JD.com, just collected $1 billion in funding from, among others, well known investment company Sequoia Capital. It is the financial arm of the e-commerce company, JD Finance, that is receiving the funding.
Sequoia Capital China, China Harvest Investments, China Taiping Insurance among other investors are putting in roughly $1 billion (RMB 6.65 billion) in what is said to be a fast-growing financial business.
- JD Finance has become a leading industry player by leveraging JD.com’s e-commerce expertise and advantages in big data and technology to provide financial solutions to Chinese consumers, innovative start-ups and traditional enterprises. By partnering with top financial and start-up service institutions, we will be even better positioned to create China’s leading financial technology ecosystem, said Richard Liu, CEO of JD.com.
Competitor Worth $50 Billion
The parent company reports that JD Finance is valued at $7 billion (RMB 46.65 billion) after the transaction is completed in the first half of this year. JD.com will still maintain majority ownership in JD Finance.
JD.com:s main competitor Alibaba also supplies financial services through Ant Financial. The company that runs the payment service Alipay and is valued at close to $50 billion.