Chinese consumer lending firm Hexindai Inc. has filed for a US IPO to raise up to US$80 million.
Hexindai.com, targeting at the relatively well-off, extends medium-sized loans ranging from RMB20,000 to RMB140,000. 80% of the total transaction volume from March 2016 to June 2017 fell in this range.
Though positioned as an online lender, it’s been primarily dependent on the lending chain of Hexin Group, majority-owned by the founder and CEO of Hexindai Inc., for customer acquisition. Over 90% of the borrowers of Hexindai.com had been referred from the physical branches of Hexin Group as of June 2017 since its inception in March 2014, according to the filing. Hexin Group claims to have 144 branches in 103 Chinese cities as of June 2017.
Hexindai Inc. doesn’t pay any fees to Hexin Group for such referrals, but borrowers acquired by the latter pay both separately.
As of June 2017, it had had 110,156 investors and 56,230 borrowers on its platform.