JD CEO Liu Qiangdong

image credit : JD.com

Chinese e-commerce company JD.com’s finance unit has now raised a $2 Billion Series B round of funding from 3 major investors in this fundraising round which is reported to double the valuation of JD Finance ahead of a reported public offering.

JP will put these funds towards investing in several financial institutions along with its expansion plans of getting banking licenses and securities as the company aims to offer more services to global consumers.

According to Reuters, This investment comes with a valuation of 120 Billion Yuan amounting to $18 Billion for the company which stands as 2 times its previous $9 Billion valuation with the company having raised about $5 Billion in total counting Chinese major investment bank CICC, Sequioa Capital China, China Creation Ventures and 4 others as its backers.

Several reports also states of a possibility of more investors joining the funding round which could increase the company’s valuation and the amount being raised in total.

JD Finance is known for its financial products ecosystem which includes the provision of payments technologies, asset management, financing solutions, crowdfunding and several consumer and enterprise financial services.

With JD.com’s already strong user base, JD Finance took advantage of its wide user base and has seen its finance unit rack up many users for its connected platform.

This funding round also notably boosts JD’s hold as one of the major financial technology companies as it competes in its market with several others with its arch-rival Alibaba, Tencent (who is a backer of JD.com), Baidu and several other Chinese companies.

These companies’ financial units are noted for having raised huge amounts of funding with Baidu’s financial arm earlier this year raising $1.9 Billion from major tech investor TPG, The Carlyle Group and other investors amongst a consortium along with Ant Financial which raised a behemoth $14 Billion funding  at a huge $150 Billion Valuation last month in a round which currently stands as the largest eve raised by a private company also clearly stating a sign of investors with huge capital always ready to back major fintech companies who already have a large user base to very well leverage.

JD.com also took a $550 million investment from Google just last month in a bid to partner with the company offering its products on the Google Shopping platform marking a foray into China for Google and its affiliated services.

JD Finance parent JD.com is currently publicly traded on the Nasdaq stock exchange with a huge market value of $55.57 Billion (as of writing) and made behemoth revenue totaling $55.7 Billion last year.

With these funding, JD.com is set to grasp a hold of the vast financial market mainly in the Chinese region which has seen so many competitors and startups rapidly delivering and developing products for this market in a bid to gain more consumer standing as major companies compete and offer different perks to attract more customers to their platforms.

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