Jiangsu province-based P2P (peer-to-peer) lending platform Kaixindai Financial Services (Gkkxd.com) has completed RMB200 million (US$34 million) angel investment from China Development Bank and other investors. China Development Bank Capital Corporation Ltd. and a group of financial services firms in Jiangsu province invested together, according to Chinese media reports. Kaixindai says it plans to use the proceeds to expand its businesses to other parts of China. Kaixindai was established in 2011 by China Development Bank and the Jiangsu provincial government. It has reached RMB12 billion in total transaction value cumulatively, according to its website.
Future competition in the Internet finance industry is essentially the competition for quality financial assets. The new investors engaged in this around have years of financing experience in their respective fields and have accumulated a good number of quality customers, which can provide strong support to Kaixindai’s steady development. The proceeds will be used to strengthen comprehensive risk management and improve customer service.
Ovamba, runs a similar Peer to Peer platform and has been successful in raising funds to deploy within West Africa (Cameroon) against creditworthy small and medium enterprises (SMEs). Much like Kaixindai Financial Services, Ovamba is able to continue to raise the necessary capital to grow its business by emphasizing asset quality, risk management and customer service for its lenders.