Chinese micro-loan/ecommerce site Fenqile closes series B round worth US$100 million

China’s Fenqile, a micro-loan site that allows Chinese users to borrow small sums of money to buy things, has just grabbed a rather large sum of money for itself. According a leaked internal memo published on iHeiMa, Fenqile has closed a series B round led by DST, for which the company was valued at “several billion” RMB. Bertlesmann, Matrix Partners China, China Renaissance, and K2 Ventures also reportedly participated in the round.

A specific sum was not disclosed in the leaked internal memo (beyond the company’s overall valuation at several billion RMB), but iHeiMa reports a source suggesting it was around US$100 million.

Fenqile allows users, primarily college students, to buy electronics they otherwise couldn’t afford via short- and long-term payment plans. The site has partnered with some of China’s largest ecommerce players, and allows users to pick up products like iPads and smartphones without paying the full price up front. Users can choose the length of the plan they want – options range from 3 months up to 18 months – and the interest rate varies accordingly.

After its founding in 2013, Fenqile has has a whirlwind 2014, netting its first angel investment in April and moving on to a series A round worth US$10 million in August. This latest round should facilitate expansion from Fenqile on all fronts, and the internal email about the round also suggests that some of the money will go to better rewarding the startup’s employees.

If this all sounds familiar, it’s because Qufenqi, a very similar startup, also closed a major investment round very recently. The two sites are competitors, and with both apparently having no trouble securing massive rounds of investment, it looks like the race for market domination is on.

(Source: iHeiMa)