After passing on the former colony’s many fintech firms, internet giant Alibaba has finally found one it can get behind with.
Alibaba has expanded its investment portfolio in Hong Kong and has chosen Qupital to be its first FinTech investment in the city.
Qupital describes itself as Hong Kong’s first and largest discounting exchange. Founded in March 2016 by Andy Chang and Winston Wong, it aims to help startups and SMEs raise cash quickly by essentially securitizing their receivables and connecting them with hedge funds, family offices, and other interested investors, who they call “funders.”
Alibaba’s Entrepreneurs Fund led the company’s $2 million seed round together with Hong Kong’s MindWorks Ventures. Several other investors were also in the mix though, including DRL Capital and the Aria Group. Qupital says that funds from this round will be used to “enhance its technology platform and also to facilitate expansion in the region.”
David Chang, a managing partner at MindWorks Ventures, had this to say about Qupital:
“Qupital is a textbook example of how Internet and technology help to optimize a traditional industry. There is a large financing gap in Asia for underserved SMEs, and we look forward to Qupital becoming the dominant player in this market.”
Photo: Nik Cyclist