BEIJING (Reuters) - China’s largest online direct sales firm, JD.com, said on Saturday it will raise 6.65 billion yuan ($1 billion) for its JD Finance subsidiary from investors including Sequoia Capital China, China Harvest Investments and China Taiping Insurance.
The financing values JD Finance at 46.65 billion yuan on a fully-diluted, post-investment basis.
Following the financing, JD.com will maintain majority ownership in JD Finance, a company news release said.
The transaction is expected to be completed in the first half of 2016, subject to customary closing conditions.
“During this phase of rapid development, we will benefit from the operating expertise that world-class financial institutions bring,” said a spokesman for JD.com.
“We will continue to evaluate all options [for future additional financing] but plan to maintain a majority ownership in any eventuality.”
Internet finance and online payments have expanded rapidly in China over the past year, and the internet finance arm of JD.com’s rival Alibaba Group Holding Ltd has also sought additional funding.
Reporting by Paul Carsten and Nathaniel Taplin; Editing by Kim COghill