Chinese P2P lender Dianrong secures funding from SCPE, Affirma Capital
Summary
Shanghai-based peer-to-peer (P2P) lending platform Dianrong announced that it has completed a new funding round led by Standard Chartered Private Equity (SCPE), the Asian investment arm of Standard Chartered, with the participation of Affirma Capital, the newly-created GP spinout of SCPE. Dianrong‘s existing investors also included CMIG Leasing, a unit of China’s biggest private investment conglomerate, China Minsheng Investment Group (CMIG), Tiger Global Management, and CLSA, part of China’s CITIC Securities. Founded in 2012, Dianrong offers loan origination, investment products, and marketplace lending solutions. According to a Fitch Ratings report, China’s tighter regulation and weak investor sentiment are likely to cause the country’s P2P lending to continue to shrink or consolidate. In March, Reuters reported that Dianrong was shutting down 60 of its 90 offline stores and laying off an estimated 2,000 employees.