Suning Financial Services Shanghai Co. announced on Tuesday it has issued new shares to raise ¥5.34 billion ($813 million) as it looks to invest further into its fintech products. The company reported around14 investors took part in the investment round and it issued 16.5% of equity. Yunfeng Capital, which is backed by Chinese e-commerce mogul Jack Ma, pumped ¥1 billion into the company to take a 3.9% stake. The company reported:
“Suning Financial Services plans to use the new funds to develop the technology behind its products, which include third-party payments, supply chain finance, consumer finance, wealth management and insurance, to improve its ability to control risk.”
The company also noted it set up its third-party payment business in 2011 and has since formed other business lines around that to set up end-to-end financial solutions and services. Last year, Suning Financial Services consolidated its financial services and brought in Suning Financial Holding Co. as a strategic investor. The company added:
“Suning Financial Services first sought to increase capital in January, when Suning Financial Hodling funded the establishment of an employee stockholding partnership to boost the capital injection, which totaled ¥6.67 billion.”