Chinese Online Marketplace Lender PPDAI Files for US IPO

Online lending platform PPDAI.com has filed for an IPO on the NYSE to raise up to US$350 million.

Founded in 2007, PPDAI.com was one of the first online lending platforms in China. As of June 2017, it had 48 million registered users, 6.9 million unique borrowers, and 202,000 investors.

Over 80% and 90% of loans were initiated through its mobile apps in 2016 and the first half of 2017, respectively. Its borrowers are primarily acquired online.

With its in-house developed credit risk assessment and investor-borrower matching algorithms, approximately 75% and 93% of the total number of loans got funded within 24 hours in 2016 and the first half of 2017, respectively. 77% of the total number of loans were funded within two hours in the first half of 2017.

Source: PPDAI Filing

The platform generated US$255.9 million in net revenues, with a net profit of US$154.7 million, in the first half of 2017. The total outstanding balance of loans increased from RMB607.4 million (US$89.6 million) at the end of 2014 to RMB20.6 billion (US$3 billion) as of June 2017.

It’ll be the fourth Chinese online lending platforms to get listed in the US if the IPO succeeds. After Yirendai’s IPO in late 2015, China Rapid Finance and Qudian launched theirs earlier this year.

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