On Oct 25 (Beijing time), Pintec, China’s leading fintech solutions provider, was listed on NASDAQ. The company’s stock ticker code is “PT”.
- ShunWei Capital was a participant in Pintec’s Series-B funding round in September 2014;
- Further, ShunWei Capital also participated in the company’s Series-D round in June 2018.
According to Pintec’s prospectus, the funds raised in this IPO will be used on product development, technical infrastructure, and marketing by the company.
According to Wei Wei, Pintec’s founder and CEO:
This is a very special day for Pintec. We have come to this day after much hard work and struggle. At this moment, I am very grateful to my team for their efforts, to my investors for their trust, and to my business partners and partners in finance for their support.
Market listing is not the be-all and end-all for us. It is, however, a pathway to the future. We will continue to carry forward with us Pintec’s vision and mission and provide users all over the world with the most effective financial services with the aid of the latest fintech.
ShunWei Capital partner Cheng Tian extended his congratulations to Pintec at the earliest opportunity. As he said in his message:
Pintec, an independent fintech solutions provider, is focused on the standardization of the key and complex retail and financial elements such as scenarios, online traffic, data, risk control, capital, and products to create end-to-end solutions for small-and-medium financial institutions and business entities, thus realizing the monetization of financial scenarios in a breakthrough fashion. At the same time, Pintec also seeks to provide its high-quality user base with exceptional financial services and products.
ShunWei Capital believes that in the future, through the leadership of its outstanding management team Pintec will be able to take large strides forward in a Chinese fintech market with dazzling prospects.
At the scene of Pintec’s listing
High-speed business growth
According to a report from Oliver Wyman, China’s online consumer finance market may be worth some CNY2.32 billion in the year 2022. However, both business entities and traditional financial institutions lack the technical capabilities to break into this market.
In its prospectus, Pintec states that the company has — through services provided to institutional customers on both ends — accumulated large amounts of data that can be used to optimize its models and solutions. The breadth of its customer base has also helped Pintec to further enhance the network effect of its services, allowing the company to effectively expand the scope of its business at low cost.
Pintec has been able to achieve high-speed development in the last two years thanks to the swift development of the market and the network advantages enjoyed by Pintec’s body of service offerings. As of Jun 30, 2018, Pintec serves a total of 183 enterprise clients and 83 financial institutions including Qunar, Ctrip, China Telecom Bestpay, Vipshop, Xiaomi, and Minsheng Securities.
A total of 25.1 million registered users have been able to obtain credit services using Pintec’s credit-related solutions. The total value of credit extended through various solutions is CNY29.2 billion. 176,000 users have accessed Pintec’s wealth management solutions through partner products, with the total value of transactions made being CNY4.8 billion. Pintec took in CNY54.9 million in revenue in the year 2016. This figure rose 936% in 2017 to CNY568.7 million in 2017. In the first half of 2018, Pintec’s revenue has risen 232% over the same period in the preceding year to reach CNY577.7 million.
Pintec’s unique “TO B” business model
Pintec positions itself as follows:
An independent leader among domestic technological services platforms that provides business entities and financial institutions with effective and smart fintech solutions, thus helping its institutional customers to better reach and service their many end-users.
The types of solutions that Pintec offers are:
- Consumer scenario staging solutions,
- Personal credit solutions,
- Small and micro-enterprise credit solutions,
- Wealth management solutions (including smart investment solutions and fund retail solutions), and
- Insurance brokerage solutions.
Pintec also provides a number of tools for value-added services.
These solutions are similar to a bridge that connects two ends
- With one end being the business entity. The solution provides this end with enhanced financial services capabilities. A diverse array of financial products can be created and operated to provide even better services to end-users and to facilitate traffic conversion and product sales;
- On the other end on this “bridge” is the financial institution to which Pintec provides Big Data applications and smart products. This helps the financial institution to embrace the digital economy by gaining a large number of internet users and transitioning quickly to smart operations.
Pintec’s solutions primarily provide its partners with smart product modules and tools for value-added services in a flexible manner with seamless integration into the partner’s platforms.
Pintec’s business model
Ahead of the competition in terms of globalization
Pintec has also set its eyes on the vast international market even as it works to develop the domestic market.
This year, on Apr 16, Pintec established Avatec.ai together with United Overseas Bank, Singapore’s second-largest bank. Avatec.ai’s core business is in the provision of services that allow Southeast Asian financial and other business entities to operate smart credit services.
Even earlier, in October 2017, Pintec has also established a partnership with FWD Group of Hong Kong to establish PIVOT Fintech, an independent fintech company in Singapore. PIVOT Fintech seeks to promote the use of digital wealth management and smart investment technology services in the Southeast Asia region.
According to Wei Wei,
The demand for fintech solutions is growing in the Southeast Asia market. Pintec, an independent player and leader in China’s financial services technology space, is able to satisfy demands on the part of various enterprises for smart consumer services and to help these enterprises provide even better services to their user bases.
Pintec’s listing on NASDAQ creates a tremendous amount of branding value that will lay a strong foundation for the company’s partnerships with both Chinese and overseas institutional customers alike.
In the future, Pintec will continue to grow its network of business and financial partners, enhance its business partnerships centered on the provision of various solutions, increase its investment in R&D, provide an even greater number of innovative solutions, and work together with its local partners to further expand its overseas market.
