China Rapid Finance Clinches Institutional Partners, Expands Investment Round

China United SME Guarantee and Bank of Shanghai Join CRF Lending

China Rapid Finance Becomes First-in-Class Marketplace to Achieve
Institutional Funding Diversification with Scale

SHANGHAI–(BUSINESS WIRE)–China Rapid Finance Limited (“CRF”), China’s largest consumer lending
marketplace in terms of number of loans, today announced wide-ranging
partnerships with two leading financial institutions that make CRF the
first-in-class marketplace to achieve institutional funding
diversification with scale, and strengthen the company’s leadership
position in China’s online finance industry.

These partnerships will see China United SME Guarantee Corp. (“Sino
Guarantee”) and Bank of Shanghai both join the China Rapid Finance
lending platform.

Sino Guarantee will provide ongoing lending capital for loans originated
on CRF’s platform, with an initial commitment of RMB 500 million. This
gives CRF direct lending capital to create institutional investment
products, as well as a non-recourse guarantee that enables distribution
of CRF products on multiple wealth management platforms.

Additionally, Sino Guarantee provided CRF with US $20 million of growth
equity, at a pre-money valuation of US $1 billion, as part of CRF’s $70
million Series C Preferred Share round. This will significantly aid CRF
in acquiring new borrowers. The platform had grown to 1 million
borrowers, and facilitated an industry-leading 8.8 million loans, as of
the end of last month. Sino Guarantee, which made the commitments after
a year of due diligence, is China’s premier financial guarantor for
loans and bonds. It was founded by leading Chinese finance companies
including the Export-Import Bank of China, HNA Holding Co. Ltd., and
Baosteel Group Corp., and international institutions, JP Morgan Chase
and Siemens China, who also serve on the board.

Separately, Bank of Shanghai has joined CRF’s digital lending platform
as an infrastructure sponsor and lender, providing CRF with valuable
payment channels, fund custody services, and lending capital support to
help CRF keep its leading position in the consumer lending marketplace
in China.

CRF’s newly announced partnerships with Sino Guarantee and Bank of
Shanghai are expected to accelerate the diversification of its
institutional lending base, providing CRF’s digital lending platform a
long-term, low-cost and steady source of funds. Using advanced big data,
predictive selection and automated decisioning technologies, CRF
facilitates loans to China’s Emerging Middle-class, Mobile Active
consumers in China (“EMMAs”).

“These transformational partnerships with Sino Guarantee and Bank of
Shanghai reinforce CRF’s leadership position in China’s internet finance
industry,” said Dr. Zane Wang, CEO of the Company. “CRF has created a
new model for an internet finance platform through its collaboration
with traditional financial institutions. These strategic partnerships
strengthen CRF’s leadership position in the consumer credit market,
expand its services to EMMAs, and illustrate an attractive way for
traditional financial institutions to create a winning internet finance
strategy through collaboration.”

“It is an important strategic decision for Sino Guarantee to enter the
burgeoning consumer credit market in China,” said Sino Guarantee General
Manager Zhou Ji’an. “With over a decade of experience in the consumer
credit industry in China, CRF has technology and market advantages. This
partnership will be win-win for both parties.”

“Benefitting from government support and a large addressable market,
companies providing inclusive finance and internet finance solutions
such as CRF will have huge potential in China,” said Jiang Hong, vice
president, Bank of Shanghai. “Combining the advantages of a traditional
financial institution and an internet finance platform, Bank of Shanghai
and CRF are cooperating to tap this emerging opportunity.”

As a pioneer in consumer credit in China, CRF has developed advanced
predictive selection and automated decisioning technologies to serve the
newly defined EMMA segment. With its multi-data, omnichannel partner
strategy, CRF is able to identify, select and acquire creditworthy EMMAs
and provide them with affordable credit. Most of the 500 million EMMA
consumers in China have no credit history and cannot get loans from
traditional financial institutions. By facilitating small consumption
loans to the EMMA population, CRF helps them create their own credit
histories and gradually climb up the credit ladder.

About China Rapid Finance

China Rapid Finance Limited is the largest consumer lending marketplace
serving China’s emerging middle class, based on number of loans. The
Company, having begun its operations in 2001, is a recognized innovator
with a proprietary Big Data analytics technology platform and a proven
track record in credit risk management and transparency. CRF leads the
industry by having facilitated more than 8.8 million loans to-date.

About China United SME Guarantee Corp.

China United SME Guarantee Corp. (“Sino Guarantee”) is China’s premier
financial guarantor for loans and bonds, and one of the largest and
highest-rated investment guarantee companies in China. A Sino-foreign
joint company set up by the State Council in 2012, Sino Guarantee is the
only domestic financing guarantee company to receive investment-grade
ratings internationally. Its key Chinese shareholders include the
Export-Import Bank of China, HNA Holding Co. Ltd., and Baosteel Group
Corp., while leading international shareholders include JP Morgan Chase
and Siemens China.

About Bank of Shanghai

Headquartered in Shanghai, Bank of Shanghai is China’s largest regional
bank and a financial leader in Shanghai, China’s commercial center. The
bank’s key shareholders include the Shanghai municipal government,
Shanghai International Port Group, Santander Bank, and TCL Group. The
Bank now has 314 branches, 203 self-service banking outlets, and 2,079
self-service ATM terminals, covering the Yangtze River Delta, the Pearl
River Delta, the Bohai Bay, and key cities in China’s central and
western regions.


ICR Inc.
Edmond Lococo, +86 10 6583-7510