JD Finance, JD.com Inc.’s financial subsidiary, has announced intention to raise 6.65 billion yuan ($1.01 billion) to be used in developing the company’s financial technology ecosystem, Shanghai Daily reported.
JD Finance said it had signed an agreement to raise the funds with investors that included Sequoia Capital China, China Harvest Investments and China Taiping Insurance. According to JD, the fundraising is set to be completed in the first half of this year.
"By partnering with top financial and startup service institutions, we will be even better positioned to create China's leading financial technology ecosystem," Liu Qiangdong, JD.com CEO, said.
According to a statement released by the company, JD.com will maintain majority stake in JD Finance after the fundraising.
"During this phase of rapid development, we will benefit from the operating expertise that world-class financial institutions bring," a spokesman for JD.com told Reuters. "We will continue to evaluate all options for future additional financing but plan to maintain a majority ownership in any eventuality."
The report said that the influence of local Internet companies such as JD and Alibaba Group in the financial sector is becoming increasingly strong as the heavy online transactions provide a strong base for the companies' online payment and financial services. The Internet finance arm of JD.com's rival Alibaba Group Holding Ltd. also sought additional funding last year.
Established in Oct. 2013, JD Finance offers consumers financial services like e-wallet and small loans for qualified vendors who sell on JD.com's platform.
It was earlier reported by media that JD Finance also plans to list on the strategic emerging industry board in 2017, but JD officials declined to comment on the plan.
The Shanghai Stock Exchange may launch the board for domestic high-growth and innovative enterprises in the Internet, alternative energy and bio-medicine sectors in the first half this year, the report said.