The Chinese platform's valuation has swollen by more than $3 billion more in just a few weeks.
Chinese peer-to-peer lender Lufax is reportedly close to raising $1 billion in a new funding round that will value the company at approximately $18 billion. According to Bloomberg, Lufax is planning to sell a circa 5 percent stake to a group of Chinese and overseas investors. A few weeks ago the company was said to be seeking the same amount of money, but at the “lower” valuation of $15 billion.
Launched in 2012, Lufax is one of the largest peer-to-peer lenders in China, focusing on consumer loans of around $10,000. To date, the platform has arranged more than 200,000 peer-to-peer loans worth a total of around $2.5 billion. Total transactions on Lufax in the first nine months of 2015 have jumped more than ninefold from the previous year to 926.4 billion yuan ($143.4 billion).
Last March, Lufax completed a US$485 million funding round at a valuation of close to $10 billion. After only 10 months, the company has nearly doubled its value, apparently securing its place as the most valuable private financial technology start-up in the world.
Lufax has indicated that it will be looking to run an initial public offering in the second half of next year, aiming to raise approximately $5 billion. Sounds like more details on this blockbuster IPO should be out in the first months of 2016 – watch this space as we chart the remorseless rise of this mega unicorn!
Insurance AI & Analytics USA (June 27-28, Chicago) is the only forum bridging the gap between the analytical and data minds and the business transformation leaders. As carriers rush to meet customer demands and deliver continuous business growth without dramatically increasing costs, deploying innovative technologies such as AI, machine learning and advanced analytics can be the only way to remain competitive. But in order to deliver real value to the organization, these innovations must have a real application in the core business areas and directly improve operational efficiency and deliver a seamless customer experience