Chinese peer-to-peer lending platform Hexindai (NASDAQ:HX) announced on Tuesday it has entered into definitive agreements to acquire a 20% equity stake in Musketeer Group Inc., an Indonesian online lending platform that offers consumption installment loans, for approximately $1.6 million, and simultaneously completed the acquisition.
As previously reported, Hexindai, which was founded in 2014, acquires borrowers through both online and offline channels. The lending platform then verifies the borrower’s intentions of applying for the loan and makes sure all contracts with borrowers are legitimate through CFCA signature authentication. Hexindai now offers borrowers a wide range of products designed based on customer segmentation data and tailored to the specific needs of the emerging middle class in China. The platform also offers investors various types of investment products with appropriate risk levels and risk-adjusted returns.
Speaking about the acquisition, Xinming Zhou, Chief Executive Officer of Hexindai, stated:
“Our investment in Musketeer is our first cross-border investment and the first step in our larger strategy to explore overseas opportunities by leveraging our extensive experience and expertise in new high-growth markets. Indonesia’s youth demographics and economic development creates a significant opportunity for us to benefit from the online lending boom in Indonesia. Musketeer’s corporate values and strategy are closely aligned with ours, which I believe will facilitate a close relationship that will allow us to share our experience and support them as they grow.”
Hexindai then explained that Indonesia’s growing population of more than 262 million and youthful demographics have enormous consumption potential and a strong demand for borrowing having been underserved by traditional financial institutions. The country’s internet infrastructure and growing mobile penetration rate will support the long-term sustainable growth of the online lending industry. The lender added:
“Hexindai believes that Indonesia’s vast online lending market and open regulatory environment present a significant growth opportunity to invest in as its first step into overseas markets.”