Fang Yuhan's actions were very efficient, and she made an appointment with someone from Weizhong Tax Banking Company within two days.
Three people came, namely Chairman Zhao Yanhui, CEO Geng Xinwei, and Chief Risk Officer CRO Xu Wei.
Zhang Yida met these three people in the office of the chairman of Ruimin Financial Management.
Xu Wei, the youngest of the three, is nearly forty years old, and the other two are in their forties. It can be seen that this is a middle-aged and elderly entrepreneurial team.
To say they are middle-aged and elderly is only relative to the Internet entrepreneurial team in their twenties and thirties.
Men in their forties are the golden age for starting a business. They have connections, funds, and patience.
After some pleasantries, Zhang Yida learned that the company, which was founded in September 2014, had completed two rounds of financing: angel round and A round.
Among them, the Series A financing was led by IDG, with an amount of 20 million yuan.
After asking the company administrator to make tea for the three of them, Zhang Yida smiled and said: "I'll just tell you the truth! I invited the three of you here, mainly because I want to talk about Ruimin Financial Management's acquisition of Weizhong Tax Bank."
Zhang Yida saw that the expressions of the three people did not change much after hearing this, and guessed that Fang Yuhan had been vaccinated.
In fact, this is indeed the case.
After receiving a call from Fang Yuhan, Zhao Yanhui was a little surprised to hear that Zhang Yida had made an appointment with him.
He and Zhang Yida were strangers, so why did he meet with him? To talk about cooperation?
In this case, it is inevitable to ask a few more questions.
Fang Yuhan didn't hide it, and openly said that Zhang Yida wanted to acquire their company.
Is Zhang Yida interested in his own company?
After Zhao Yanhui discussed with the other two founders for a while, they decided to meet Zhang Yida and listen to his conditions.
Zhang Yida continued: "Financing is difficult and expensive for small and micro enterprises, which has always been a difficulty and pain point for society.
Ruimin Financial Management also entered the field of corporate loans with the original intention of solving this problem.
However, risk control in the field of corporate loans has always been a difficulty. As a corporate credit reporting and big data analysis company, Weizhong Tax Bank has come into our sight.
I have also learned a little about your company and feel very admired.
I just completed the 20 million Series A financing, but I am reluctant to move into a Grade A office building and still work in the old office.”
Xu Yanhui smiled and said: “Although we have completed 20 million in Series A financing, this amount is not large at all.
In the field of mutual funds, there are many companies raising hundreds of millions, or even billions or tens of billions.
For example, for Ruixiang, wasn’t the last round of financing $2.5 billion?
In this industry, we are just toddlers.
In addition, when people reach middle age, they have long passed the age of being pushy and caring about face, so we believe that every penny of financing must be spent wisely.”
Zhang Yida laughed, he was indeed much more mature and steady than the young entrepreneurs.
"I've learned about Weizhong Tax Bank. You only provide corporate big data credit reports to banks. Why don't you do your own lending?"
Geng Xinwei, CEO of Weizhong Tax Bank, replied: “The company will not blindly expand and engage in diversified development until it has established an absolute advantage in the field of corporate big data credit reporting.
We believe that only by focusing on one thing can we achieve the best in it."
Zhang Yida nodded, he was indeed very pragmatic. It must be that he was severely beaten by starting a business when he was young, so his goals are so clear and firm.
"Ruimin Financial Management has its own stable financing channels, and now it wants to enter the field of small and micro enterprise loans. I would like to ask, how can we integrate "finance, technology, and taxation" and maximize its power?"
The three of them knew that they were testing themselves and others, Zhao Yanhui smiled and said: "Let Xu Wei answer this question!
I have a purely technical background, while Lao Geng has been working in a bank.
Xu Wei has more experience in financial technology applications. He is a Ph.D. from MIT and has served as vice president of quantitative analysis at Wells Fargo Bank and model risk officer at First International Capital."
"Oh, really?"
Zhang Yida smiled and said: "Our company has many talents who have returned to China to join us, like Yimindai CEO Chen Shaojie, they are all from First International Capital.
Currently, half of the world of domestic mutual funds is supported by the First International Gang.
Chen Xi, CRO of Rice Finance, Yu Quan, CRO of MYBank, Pan Yiting, CRO of Yiyindai, Zhang Feng, COO of Paipaidai, Yao Zhiping, deputy general manager of Lufax...
I have to admit it! First International Capital is an unavoidable monument in the history of consumer finance in the world.
I heard that headhunters sent out by domestic mutual financial companies poached all the Chinese people in First International Capital.
The most outrageous thing I have heard is that a person worked as an intern at e for a month and became the chief risk officer of a financial company after returning to China. As a result, the company's valuation increased by 100 million."
Xu Wei smiled and shook his head. He was deeply proud of Zhang Yida's praise, but also worried about the irrational prosperity of the domestic mutual gold industry.
"Compared with the red sea of domestic C-side consumer finance, I prefer the less noisy B-side financial technology."
Zhang Yida looked at Xu Wei and asked: "Mr. Xu's argument is quite novel. Do you think there are more opportunities on the B side?"
"There may not be that many opportunities, and the market is not that big. But it is more suitable for long-term development, because it is more difficult to make money on the B side, and more people lack such patience and prefer to make quick money on the C side."
Xu Wei looked at Zhang Yida and said, "Of course, I don't mean to accuse anyone here. Everyone's choice is different.
The B-side is still a blue ocean, and there are certain entry barriers, so we can quietly engage in research and development and lay the foundation."
It is indeed incredible that China does not have a B-side Internet giant.
Zhang Yida believes that such a company will emerge sooner or later, and of course it will most likely be hatched in Ahri and Penguin.
Without him, the roots are too deep. The possibility of Ahri is even greater, because DingTalk is much better than Enterprise WeChat.
After showing off for a while, Xu Wei began to return to the topic. He said: "Then I will briefly talk about my views on small and micro enterprise loans. I hope Mr. Zhang will forgive me for any shortcomings."
"Mr. Xu is so humble, please give me some advice."
Xu Wei continued: “The use of tax-related data in the loan field is a Chinese innovation.
After China implemented the tax reform from business tax to value-added tax according to its national conditions, the value of tax-related data has greatly increased. This is a very big opportunity for China's financial industry, which can directly enter the era of data and overtake the international market.
.
The corresponding data is retrieved through the dedicated line interface of the tax bureau for cleaning and analysis, a visual report is formed through the model, and the enterprise is scored.
Financial institutions can provide loans to companies based on this information.
In this process, a more realistic way is to realize automation and use "artificial + machine" learning to give financial institutions an additional tool to improve loan efficiency.
In the process of in-depth data modeling, we discovered that small, medium and micro enterprises have more unique data characteristics today.
For example, for Internet companies, they do not have factories, office buildings, or a large amount of equipment.
Therefore, when setting the weights that affect their credit, it will be very different from traditional enterprises.
At the same time, we also came to a conclusion: Different models must be constructed for different industries, which can make the impact factors have stronger industry attributes.
If small and micro enterprises are in very good operating conditions, they will often have higher financial management expenses. As daily expenses increase, the enterprise will reduce its profits on the books.
Therefore, the management fee ratio of small and micro enterprises, an indicator that is not covered by traditional financial analysis, has also become an important reference for reflecting enterprise operations.
These are very different from traditional assessment criteria such as corporate asset-liability ratios."
Zhang Yida glanced at Xu Wei appreciatively. He was indeed an expert. It seemed that Weizhong Tax Bank had indeed found out some tricks in the field of tax loans.
If you want to buy, you must buy this company.
"In addition to tax-related data, small and micro enterprise loans can also include other corporate operating data as a reference, right?"
The company's basic information, tax information, operating information, financial information, upstream and downstream information, violation inspections, etc. can be incorporated into the risk control model, multi-dimensional analysis can be performed to profile and score corporate users, and form the final business value."
Zhang Yida asked again: "These methods are all used in the pre-loan stage. Do you have any good solutions during and after the loan?"
Xu Wei frowned and said: "Currently, Weizhong Tax Bank mainly provides banks with pre-loan risk control technical support.
During and after the loan, you need to cooperate with systems such as CRM and ERP that involve the business level.
In addition, enterprises can also be monitored to a certain extent in terms of changes in industrial and commercial information, judicial penalties, and fluctuations in tax amounts."
“As for CRM, apart from internal work, we have no external products for the time being.
However, Ruixiang's Mobao Payment, in cooperation with the Smart Finance Research Institute, has been conducting data analysis on the collection code and cash flow of individual industrial and commercial households.
We have achieved some results so far, and in the future we will open merchant loans to Mobao Pay’s tens of millions of merchants.”
Xu Wei's eyes lit up. He had heard that Ruixiang's financial technology technology was very good, but he didn't expect that Ruixiang would also start to get involved in the B-side.
"Our country has 62 million self-employed individuals and more than 20 million small and micro enterprises.
Compared with small and micro enterprises, the difficulty of risk control for individual industrial and commercial households is simply hellish.
They have no tax data, only cashier flow."
Speaking of this, Xu Wei said with emotion: "In China, only Penguin, Leech Financial, and Ruixiang can conduct big data risk control assessments for these individual industrial and commercial households."
Zhang Yida said: "Compared to the two of them, Ruixiang's current data sources are still much smaller. After a few years, we should be able to catch up with them."
Xu Wei wondered if Zhang Yida had any trump card? However, Zhang Yida did not go into details, and it was not convenient for him to ask. Although he was very curious, he could only suppress it.
“Ruimin Financial Management is very determined to enter the business of lending to small and micro enterprises. On the capital side, we have no shortage of lending funds as we have the traffic entrance of Huimin Travel.
The only thing lacking is the risk control ability for B-side enterprises."
Zhang Yida waved his hand again, "But that doesn't matter. Let's not talk about the tax and banking field. Ruimin Financial Management will also consider investing in and acquiring corporate inquiry websites, SaaS software or CRM software in various industry segments.
Ruimin Financial Management will definitely be more than just P2P in the future, and even financial business will account for only a small proportion of revenue.
What we want to do is China’s Experian! With corporate credit reporting as the core, we provide derivative finance, software, marketing and other services.”
Xu and Wei are all familiar with Experian, a world-class corporate credit giant with an annual market value of tens of billions of dollars and tens of thousands of employees.
"Join Ruimin Financial Management! Maybe we should change our name to... Ruixin Group.
Rui, wisdom, and clarity; faith, honesty, trust, and credibility.
Just call it this name!"
After changing the name of the company, Zhang Yida looked at the three people again and said: "Relying on the current foundation, Ruixin Group can provide you with a broader stage.
In the future, you can even follow my other industries to go overseas and compete with international credit giants.
As for Weizhong Tax Bank, I can also acquire it at a premium of 20% based on the valuation of your Series A financing.
Cash or equity in Ruixin Group is fine. What do you think?"
Xu Wei was a little tempted. He gave up many invitations from unicorn C-side consumer finance companies and joined Weizhong Tax Bank, which had just received Series A financing. All he wanted was to show his ambitions in the B-side financial technology field.
The stage that Zhang Yida can give him is undoubtedly broader, and he is a high-quality candidate for refuge.
As the founders, Zhao Yanhui and Geng Xinwei hold the largest number of shares in the company. It is inevitable that they will hesitate to sell the company suddenly.
The purchase price provided by Zhang Yida is actually average, only a 20% premium compared to the valuation of the Series A financing a few months ago.
The two of them are mainly considering their own gains and losses from entrepreneurs to professional managers.
"Mr. Zhang, Ruimin Financial Management has been valued at US$1 billion. The valuation of our Weizhong Tax Bank is only 200 million yuan. In the case of equity mergers and acquisitions, we can't hold too many shares?"
Excluding venture capital, the two of us can barely hold 1%. As for Lao Xu, he can’t even hold 1% of the shares.”
Zhao Yanhui once worked as a teacher at the National University of Defense Technology. As a soldier, he has a rather decisive character and raised his concerns directly.
It turns out that there are too few shares, and this issue is easy to discuss. Zhang Yida said with a smile: "Ruimin Financial Management has 10% of the option pool, and after two rounds of financing, it still has 8.1%.
Currently, 2% has been distributed. After you join, you can also get options.
In addition, depending on the development situation later, I will discuss with shareholders to replenish the option pool."
"Okay! Can we choose the acquisition method of half equity and half cash?" Geng Xinwei asked.
"Yes!" Zhang Yida's answer was simple but powerful.
Geng Xinwei looked at two colleagues and said, "Then we have to discuss it with IDG and other institutional shareholders before we can make the final decision."
"Well, IDG can choose to exchange shares or withdraw in all cash. You can take my words to them."
The three of them all nodded, and after another cordial conversation with Zhang Yida, they left with satisfaction.