DIANRONG

Marketplace lending, Blockchain, and “The New Finance” in China

GROUP 5
SARVAGYA JHA - 19P044
SRISHTI PANDEY - 19P055
BINAYJEET SINGH - 19P079
ISHIKA JAIN - 19P140
KARAN KHANNA - 19P141
ABHISHEK KALE - 19P182
ADITYA ANAND - 19P184
THE DAWN OF DIANRONG

 Founded in 2012 by Soul Htite and Kevin Guo.

 Dianrong combined strengths in both engineering and legal, similar to the Lending Club in the United
States.
 Headquartered in Shanghai, China, Dianrong had branches in more than 30 cities across the country.
 Dianrong announced its series A financing in early 2014, followed by series B funding in 2015 and finally
a series D round in 2017
 Headquartered in Shanghai, China, Dianrong had branches in more than 30 cities across the country.
 Dianrong originated more than $500 million in monthly assets for 4 million retail lenders. With loans
totaling RMB 29 billion (US$ 4.3 billion)
 The non-performing loan rate was just 2.3%
 The platform was ranked third in the country, and first in terms of compliance, transparency and
technology
DIANRONG – CURRENT SCENARIO

 In 2019 China-based peer-to-peer (P2P) lender Dianrong laid off as many as 2,000 employees.
 It also shut down 60 of its 90 brick-and-mortar outlets, which helped verify the identities and
qualifications of users.
 Additionally, the company has been accused of falling behind on wages and severance pay, per a Chinese
media outlet cited by TechNode
 The company reportedly started shrinking its business in 2 nd half of 2018, despite securing a $70 million
funding round in January to expand its services, including SMB lending.
 Dianrong, one of China’s biggest peer-to-peer (P2P) lenders blamed the government for its troubles
saying the absence of clear-cut policies was proving to be a heavy burden.
THANK YOU