4 charts, Member Exclusive

4 charts on the Lufax IPO

  • Chinese digital lender and wealth management firm Lufax is preparing to float shares in the U.S.
  • The company continues to grow and innovate as financial regulation continues to change.
close

Email a Friend

4 charts on the Lufax IPO

As China’s Ant Group prepares for the largest IPO on record, another Chinese financial technology firm is going public. And unlike Ant’s decision to publicly sell shares in Hong Kong and Shanghai, online lender Lufax is prepping its IPO for U.S. markets.

Lufax plans to raise over $2 billion in the U.S. at a time when tensions are high between the US and China. In August, U.S. regulators threatened to block Chinese companies from listing stateside.

Lufax’s roots are in peer to peer lending. As an early leader in the space, the company has evolved its lending and wealth management offerings as Chinese regulators cracked down on the sector. For the six months ended June 30, Lufax had a net profit of more than $1 billion on total income of $3.64 billion, according to its IPO prospectus.

Lufax’s business model

lufax's platform

The online lender and wealth manager employs what it calls a “hub and spoke” business model matching the right financial products to its users. Its retail credit facilitation hub has connected 13.4 million borrowers with more than 50 banks, trusts and insurers as spokes on the platform.

SPONSORED

 

Lufax offers small business owners access to large-ticket-size funding, while enabling financial institution partners to tap into a fast-growing, high-quality small business segment. To acquire high quality borrowers, the company integrates its direct sales team with a network of channel partners, including the Ping An ecosystem.


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — $59/mo Already an Outlier member? Sign in to your account

0 comments on “4 charts on the Lufax IPO”

Member Exclusive

‘It doesn’t happen overnight’: How Wise is expanding its banking relationships internationally

  • Wise may have shortened its name, but its roadmap continues to expand.
  • At Tearsheet’s Big Bank Theory Conference, Lindsay Grossman, director of product, and Ryan Zagone, head of Americas, talked about how the company is leveraging APIs to accelerate growth.
Rivka Abramson | November 23, 2021
Member Exclusive

‘We’re not here to build the airplane’: How Greenwood builds product for the culture

  • Greenwood hasn’t launched yet, but already has 600,000 signups on its waitlist, and a list of big banks backing it.
  • At Tearsheet’s Big Bank Theory Conference, Greenwood’s Chidiebere Kalu talked about how creating a successful product is not just about building an app, it's about creating a community.
Rivka Abramson | November 19, 2021
Member Exclusive

5 takeaways from Marqeta’s Q3 results: What you need to know

  • Marqeta released its third quarter 2021 results, posting strong revenue growth.
  • The company continued to expand existing partnerships while launching new products.
Iulia Ciutina | November 17, 2021
Member Exclusive

How crypto firms are using Marqeta’s platform to build crypto spending and rewards products

  • Marqeta has announced new applications of its platform to support cryptocurrency payments and crypto-based rewards on debit and credit card spending.
  • Coinbase, Fold, Shakepay and Bakkt are using Marqeta’s platform to build card solutions around crypto spending and rewards.
Ismail Umar | November 16, 2021
Member Exclusive

With N26’s $900 million round of funding, could it be retreating from the US market?

  • N26 raised $900 million, valuing the firm at $9 billion.
  • In spite of the new investment, the challenger bank's commitment to the U.S. market may be flagging.
Subboh Jaffery | November 05, 2021
More Articles