Shenma Finance, a Shanghai-based fintech company that specializes in lending for motorcycles and two-wheel and three-wheel scooters has raised over $40 million according to a new report.
Shenma Finance raised $47.25 million in Series C round funding, which was led by technology investor China Growth Capital, Chinese fintech firm Tongbanjie Group, and Hina Group, one of China’s leading investment banking firms.
“The rural mobility market is worth a trillion RBM [$157 billion] as it has a huge demand base and stable replacement cycle, as well as low penetration rate for financial service,” Leon Wang, managing director at Hina Group, said in the report. “Shenma Finance spent three years to connect thousands of dealers and provide loans and supply chain financing. It has become a leader in electric scooter and motorcycle financing.”
Part of Shenma’s plan is to expand to energy cars in the future. Due to the Chinese government’s restrictions on new car purchase and use in the city, it is expected that there will be a shift to rural markets, which Shenma specializes in.
Founded in 2015, Shenma Finance focuses on motorcycles for rural customers. It covers more than 2,600 counties and towns in China.