Fintech Qupital partners with eBay to provide sellers with financing
Qupital, a trade financing technology platform, has announced that it will partner with eBay as one of its officially recommended Hong Kong financing service providers.
Qupital said that it will provide offshore financing services and working capital, to eBay sellers in Hong Kong and China through QiaoYiDai, its main product.
According to Qupital, it will be able to “obtain real-time data authorized by eBay sellers through API channels to maximize the value of the sellers’ operational data for credit control purposes. It adds that “this enables the company to facilitate a fully online application experience, a credit assessment process completed on average within three working days and all drawdown requests to be settled within 24 hours.”
Qupital is one of the growing fintech companies in Asia with Aspire and First Circle that offer credit lines, loans, and services to online sellers, SMBs, and other businesses who often have trouble obtaining working capital from traditional lenders like banks.
Founded by Andy Chan and Winston Wong in March 2016 and based in Hong Kong, Qupital, an accounts receivable trading platform, matches businesses and institutional investors to provide working capital to businesses.
Small and medium-sized enterprises are allowed to upload their unpaid invoices to the Qupital platform and receive an advance of up to 95 percent of their invoice value immediately. Investors are able to bid on these receivables or amount and end up earning a short term yield.
These companies do not rely on financial statements; they use data analytics to assess the creditworthiness of the loan applicants. QiaoYiDai looks at e-commerce statistics and big data, including the credibility of loan seekers’ online shops, historical transaction data, rating data, refund, and exchange rates of goods, among a plethora of other data points.
On average, QiaoYiDai provides a credit limit of USD 150,000, with a maximum credit line of up to USD 1.5 million for qualifying sellers.
In March 2018, Qupital announced the collaboration with Alibaba.com. Last year Qupital also raised a USD 15 million Series A led by strategic investor CreditEase FinTech Investment Fund, with participation from Alibaba, MindWorks Ventures, and Alibaba Hong Kong Entrepreneurs Fund. In 2017, Qupital raised a USD 2 million seed round led by MindWorks Ventures and Alibaba Group under Alibaba Hong Kong Entrepreneurs Fund, Aria Group, and DRL Capital.
Many e-commerce vendors in China are moving to social media as their main channels for reaching out to buyers. Alibaba has partnerships with Weibo and Douyin and rival JD.com recently got into a strategic partnership with Kuaishou.