Chinese online consumer lender Qudian has filed for an IPO on the NYSE.
Qudian provides merchandize credit products which allow consumers to take out installment loans for online purchases and small cash credit products. The merchandize credit products also receive sales commission fees apart from financing income.
Almost all of the transactions facilitated on Qudian are through mobile. Borrowers can apply for credit on Qudian mobile apps and partnering mobile services, and receive approval as soon as a few seconds, according to Qudian.
The company uses borrowers’ behavioral data generated on its own online platform, apart from data and credit analyses from third-party partners, to determine credit limits.
The strategic partnership with Ant Financial, the finance tech company affiliated to Alibaba, that allows Qudian products accessible through Alipay, the payment and financial services platform of Ant Financial, has significantly contributed to Qudian’s growth, according to the company. Zhima Credit, or Sesame Credit, the online credit scoring service developed by Ant Financial, provides Qudian with credit analysis information of prospective borrowers.
In the six months ended June 30, 2017, the company facilitated RMB38 billion (US$5.6 billion) in transactions to 7 million active borrowers, generating RMB1833 million (US$270 million) in total revenues and RMB1166 million (US$172 million) in operating profit.
Average monthly active users were 26 million as of June 2017. It registered 3 million new users in the first half of this year. The company was founded in April 2014.