The finance unit of JD.com Inc. aims to raise about $1.9 billion in equity to bolster its presence in China's digital financial services industry, Reuters reported March 16, citing "three people with knowledge of the matter."
JD Finance, currently valued at about 120 billion yuan, reportedly seeks to expand into securities, banking and insurance sectors amid the foray of a number of companies focused on financial technology.
The Chinese e-commerce giant's unit, which primarily offers online financial services and products, reportedly started the fundraising process in late 2017 and plans to close it in the coming weeks. It will use the proceeds to invest in local financial institutions and obtain licenses to run securities, banking and other operations, two of the people reportedly told Reuters.
China International Capital Corp. Ltd.'s Qiyuan National New Industry Venture Capital Guidance Fund, state-run agribusiness company COFCO Corp. and industrial conglomerate China Merchants Group Ltd. are participating in the funding round, according to the report.
As of March 16, US$1 was equivalent to 6.33 Chinese yuan.
