Duanrong

About Duanrong

Duanrong (短融网), established in 2014 by founder and CEO Wang Kun, operates as a peer-to-peer (P2P) lending platform headquartered in Beijing, China. Wang Kun's professional background includes a tenure as an investment director at a fund associated with the China Development Bank and later as a fund manager at Sequoia Capital, where he focused on consumer-related investments. This experience in investment and risk management shaped the company's direction. The company was founded on the principle of providing short-term financing solutions, drawing inspiration from the long-standing pawnshop model to ensure security through high-liquidity assets.

The firm's core business revolves around offering short-term financing to individuals and businesses, connecting them with investors on its online platform. Initially, the platform concentrated on automobile-pledged loans, a model chosen for its inherent security and the high liquidity of the underlying asset. Over time, Duanrong expanded its portfolio to include mortgage-backed loans, personal loans, and financing for small businesses. It serves borrowers seeking low-cost, short-term capital and investors looking for returns, which the company claimed to be around 12-15% annually at one point. Revenue is generated through the facilitation of these loan transactions on its platform.

Since its inception, Duanrong has secured significant financial backing, raising a total of $114 million over three funding rounds. The first round occurred in July 2014, followed by a Series B round of $59 million in January 2016, and a Series C round of $44.9 million in July 2018. Key institutional investors include QF Capital, Furen Pharmaceutical Group, and China Investment Capital. Following its B round, the company established the Jiuyi Group and created dedicated divisions for rural and auto finance to strengthen its asset-side operations. This strategic expansion included acquiring QiHai Finance, a major auto finance platform in Central China, significantly growing its team and national presence with over 140 branches.