Tencent and JD invest in auto financing startup Linkfin Technology

The market is expanding fast in China.

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Shanghai-headquartered fintech startup Linkfin Technology has closed a USD 50 million Series B equity financing round, according to the WeChat account of JD Digits, the fintech arm of JD.com.

This round was jointly led by JD Digits and Tencent. Bertelsmann Asia Investments, which was the investor for the company’s Series A round, also participated in this round.

The current valuation of the startup, which was founded in June 2017, was not disclosed.

By linking with small and medium sized banks in China, Linkfin Technology provides auto-backed loans to micro and small businesses and individuals who are in need of cash.

JD Finance, an app of JD Digits, has been directing its users to Linkfin, according to Chinese media outlet The Beijing News.

Linkfin itself also has a WeChat public account to gain users too.

Auto loan asset-backed securities issued in China since start of this year have reached RMB 106.2 billion (USD 15.4 billion), close to the value of RMB 121.6 billion for the entire year of 2018, indicating the auto financing market is expanding fast, 36Kr reported, citing data of Wind, a finance information provider in the country.

36Kr is KrAsia’s parent company