Ride-hailing giant Didi Chuxinghas won regulatory approval to take an equity stake in a consumer finance company, a move that could help the firm deepen its footprint in the fintech sector, reported Caixin.
Dirun (Tianjin) Technology, a wholly owned subsidiary of Didi, has been given the go-ahead to invest in Bank of Hangzhou Consumer Finance (BHCF) by subscribing for 853.9 million new shares, according to a statement released Friday by the Zhejiang bureau of the China Banking and Insurance Regulatory Commission. No details were given about the value of the investment, although the statement said the registered capital of the consumer finance firm will rise to RMB 2.6 billion ($395.4 million) from RMB 1.3 billion.
Upon completion of the deal, Dirun will become BHCF’s second-largest shareholder with 33.3% of the venture’s equity. Bank of Hangzhou will remain the largest shareholder although its stake will fall to 35.1% from 41.7%.