Rent Installment Platform 58 Fangdai Completes Series D Financing
iYiou, 1/19/17
Nanjing-based Banghang Investment Management, operator of mobile rent installment payment platform 58 Fangdai, has reportedly completed USD 8-digit Series D funding. 58 Fangdai CEO Wu Chao confirmed that the company is currently fundraising, but the details of amount and investors will not be announced until after the Chinese New Year. 58 Fangdai previously won RMB 9-digit Series C funding led by Yingxin Guofu Investment Management and Weizhongxiang Equity Investment in October, 2016.
58 Fangdai primarily provides rent installment payment services between tenants and landlords. Tenants can pay monthly rent, while the landlord can receive a one-time complete rental payment (often a one-month safety deposit plus 3-months' rent at a time, and in some cases also the one-month real estate agent's fee, depending on whether it is the renter or the landlord who has agreed to pay this).
58 Fangdai launched a credit-based rental product with real estate agency Woai Wojia's subsidiary brand "Xiangyu" and consumer credit rating service Sesame Credit in September, 2015. The service allows users to rent an apartment with zero interest and zero service fees if their Sesame Credit score is good enough. 58 Fangdai also launched a C2C rental installment brand "Fang Shuaishuai" in December, 2016. When tenants sign a lease with a landlord through Woai Wojia, they can apply for monthly rental payments. Fang Shuaishuai uses the tenants' Sesame Credit rating to offer different discounted service fees for installment payments.
58 Fangdai has loaned more than RMB 4 bln at a rate of RMB 300-400 mln per month, according to Wu Chao in a previous interview. 58 Fangdai has a repeat customer rate of 83%, the loans earn an annualized 15% interest, and loan capital costs are less than 8%. The user base is 70,000, and 58 Fangdai hopes to loan out more than RMB 20.0 bln within the next three years.
Editor's Note: For more information on this topic, please see "Rent Installment Platform 58 Fangdai Secures RMB 9-digit Series C," MD 10/31/16 issue. Sesame Credit is operated by Ant Financial, the financial services affiliate of internet conglomerate Alibaba Group (NYSE: BABA).
Keywords: wireless mobile lending mobile application funding Series D consumer credit Banghang 58 Fangdai Wu Chao online real estate installment plan
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