Based in Beijing, Qudian (QD) is the largest online provider of small cash credit products in China. The company facilitated RMB38.2 billion in transactions to seven million active borrowers through the first six months of 2017.
Qudian provides small credit to unserved or underserved consumers, who are often young and mobile-active, but with limited access to traditional financial products due to a lack of traditional credit data. The company believes its big data analytics capability allows an alternate way of estimating the creditworthiness of its customers. The company’s system allows for an immediate approval of applications and delivery of funds in digital form and merchandise credit products.
The company receives financing income from cash credit products and financing income & sales commission fees from merchandise credit products.
Loans provided to customers typically have short durations, which allows the company to quickly establish a credit profile for its borrowers. During the first half of 2017, an average active borrower accessed credit six times and borrowers with outstanding credit had utilized roughly 51.3% of their limits.
The company operates entirely online and almost all of its transactions are facilitated through mobile devices. Prospective borrowers can receive approval immediately after applying and have the funds deposited into their Alipay accounts. The company also allows customers to finance purchases made on Qudian’s online marketplace. The marketplace offers products from nearly 500 merchandise suppliers.
Through the first six months of 2017, the company generated revenue of RMB1.83 billion, up 393% from RMB371.61 one year ago. The company’s income from operations totaled RMB1.17 billion, up 669% from RMB151.59 billion one year ago.
In 2016, Qudian’s revenue totaled RMB1.44 billion, up 514% from RMB235.01 million in 2015. The company made RMB713.07 million from operations in 2016, up from a loss of RMB231.08 million in 2015.