Hong Kong-based online SME trade financing platform Qupital is targeting the mainland after closing a $15 million Series A funding round led by CreditEase FinTech Investment Fund.
Alibaba Hong Kong Entrepreneurs Fund and MindWorks Ventures also joined the round for Qupital, which was founded in 2016 by two university undergraduates.
As well as providing cash, CreditEase will help Qupital with marketplace lending access and networks, as well as on-the-ground operational expertise, for the push into mainland China.
To break the Chinese market, Qupital aims to open branches in key cities including Shanghai, Hangzhou, Guangzhou, and Shenzhen while also tapping the Greater Bay Area to set up a technology center for talent sourcing and development.
In addition, the wealth management team of CreditEase is also considering the provision of new capital to fund SMEs' trades.
Dennis Cong, MD, CreditEase FinTech Investment Fund, says: "We look forward to working with Qupital to broaden its source of capital base and create unparalleled investment opportunities for CreditEase."
The new funding will also be used to develop internal credit control systems, e-commerce finance product, and overall technological capabilities.
Andy Chan, founder, Qupital, says: "We plan to further expand our regional business towards mainland China and seize the opportunity arising from the development of the Greater Bay Area in the future.
"We are on track in our goal to becoming the largest supply chain financing platform in Asia within the next three years."