Qupital, Hong Kong's largest online, small and medium enterprise (SME) trade financing platform, announced that they have successfully raised $15 million USD as they complete their Series A investment round. The company plans to use the funding to further enhance its internal credit control systems, e-commerce finance product, and overall technological capabilities to cope with future demand.
To penetrate into the Chinese market, Qupital aims to open branches in key cities including Shanghai, Hangzhou, Guangzhou, and Shenzhen while also taking advantage of the flourishing Greater Bay Area to set up a technology center for talent sourcing and development.
The CreditEase FinTech Investment Fund (CEFIF), a leading FinTech fund led the round with additional capital injections from the Alibaba Hong Kong Entrepreneurs Fund and MindWorks Ventures following their initial investments in the seed round.
Adding CreditEase as a strategic investor in this round of funding is important because it creates business synergies that will benefit both parties. As a pioneer and leader specializing in inclusive finance and wealth management, CreditEase will provide marketplace lending access and networks, to facilitate the geographical expansion of Qupital, as well as bringing on-the-ground operational expertise. In addition, the wealth management team of CreditEase is also considering providing new capital to fund SMEs' trades.
Dennis Cong, PhD, Managing Director of CEFIF, commented on the investment in Qupital and said, "The growing volume of SME and cross-border trading drives a huge demand for alternative financing for SME's who are underserved in the market and opportunities for investors to earn a decent risk-adjusted return. We look forward to working with Qupital to broaden its source of capital base and create unparalleled investment opportunities for CreditEase. We will be working with Qupital to further utilize the technologies to enhance risk management, user experience and operational efficiency."
Cindy Chow, Executive Director at the Alibaba Hong Kong Entrepreneurs Fund commented on the fund’s participation in the Series A investment round and said, "We are pleased to witness the rapid growth of Qupital, from a local Hong Kong startup to a well-organized corporate team in the region. Through this follow-on round of financing and the business opportunities that Alibaba Group has facilitated, we have confidence in the future success of Qupital.
Upon the completion of the Series A round, founders Winston Wong and Andy Chan said they were honored and grateful for investors' support and are excited about their company’s next chapter of growth.
Wong commented on the company and said, "Qupital has accomplished remarkable results since 2016. Since the completion of the seed round financing, we successfully handled over 8,000 transactions, totaling HKD 2 billion. Over the past two years, we are grateful to all our investment partners for supporting Qupital. In particular, we are honored to receive the capital injection from our strategic investor, CreditEase in this round of funding and are extremely pleased to receive the continuing trust from the Alibaba Hong Kong Entrepreneurs Fund and MindWorks Ventures."
Co-founder Chan also commented on the company’s development and new funding and said, "In tandem with our flourishing partnership with Alibaba.com last year, we achieved a successful expansion into the cross-border e-commerce market. 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."