Qupital, a Hong Kong-based data-driven financing platform for small and medium-sized enterprises (SMEs) in the new economy, has on Thursday announced its new Series B2 financing round funded by a consortium of new and existing investors from Hong Kong and Southeast Asia.

Qupital said in a statement that the fresh capital injection will be instrumental in scaling its securitization facility backed by Citi, which supports its rapidly growing e-commerce loan portfolio.

“This financing round fully reflects our investors’ confidence in Qupital as the leader of the trade finance industry,

“It also validates Qupital’s mission to enhance financial inclusion for small and medium enterprises in this new era of digital economy,” said Andy Chan, Co-founder and President of Qupital.

“In addition to serving the blue ocean of cross-border e-commerce, with a robust yet diverse e-commerce loan portfolio that has a notably low default rate, Qupital offers an attractive alternative asset to professional investors, which has low correlation with other asset classes while empowered by big data and advanced technologies,” he added.

With this new round of funding, Qupital said the firm is poised to seize the vast growth opportunities brought by the ever-vibrant e-commerce landscape comprised of rising stars like Temu, TikTok, Douyin, JD.com and Pinduoduo etc.

While the company is committed to drive its core financing business to new heights, with confidence in its performance track record, it will also prepare for public note issuance as a pioneering asset class available to a wider range of investors in the near future.

Qupital is a Hong Kong based FinTech company that specializes in data-driven financing, primarily serving United States and Europe-facing merchants in China selling on platforms like Amazon, eBay, Shopee, Lazada, as well as domestic merchants in China on JD.com, Tmall and Pinduoduo etc.

To date, it has disbursed over $2 billion since 2016 with a notably low default rate of below 0.1 percent.

Some of its high profile investors include Alibaba, Citi, Greater Bay Area Homeland Development Fund and the Hong Kong Government.

Qupital has continued to innovate its product offerings and increase market penetration, covering both import and export cross-border e-commerce financing sectors.

Moving beyond traditional underwriting methods that emphasize collateral based lending, the firm’s proprietary credit model harnesses the power of big data and unlocks the value of inventory, providing e-commerce merchants immediate access to timely and affordable working capital.

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