eLoancn

About eLoancn

eLoancn, also known as Beijing Eloan Ltd, established its presence in the Chinese peer-to-peer (P2P) lending market as one of the earliest entrants in 2007. The company was founded by Wang Sicong, who also served as its CEO. The firm carved a specific niche by concentrating on providing financial services to underserved rural populations, with a focus on agriculture, farming, and small businesses in these areas. This strategic direction allowed it to address the financing gap for farmers' personal loans, primarily for agricultural reproduction and breeding.

The company's business model was structured as an online lending platform where individuals could directly borrow from and lend to each other. To manage risk in its target demographic, eLoancn implemented a unique verification process. Borrowers were required to have a family sponsor and record a two-minute introductory video, a method that played on the cultural importance of 'face-saving' to ensure repayment. A significant component of its operational strategy was a franchising model, likened by the CEO to Uber's platform. eLoancn partnered with approximately 1,600 local partners who were responsible for managing and overseeing lending activities within their townships. Under this arrangement, the local partners retained 80% of the profits generated from the loans they processed, while eLoancn received the remaining 20%.

A major milestone in the company's history occurred in November 2014, when it received a substantial, though officially undisclosed, investment from Legend Holdings, the parent company of Lenovo Group. Reports from local media suggested the investment was around RMB 900 million (approximately US$147 million). This capital injection was intended to fuel market expansion, potential acquisitions, and upgrades to its IT systems. Following the investment, the founding team ceded controlling stakes but retained operational control. By late 2015, the platform's total transaction volume was reported to be approaching 20 billion yuan, with a significant majority of these loans flowing to rural areas.