Seven Stars Cloud Group, more commonly known as Ideanomics, have recently signed a deal with one of China's leading auto financing company, First Auto Loan. The deal between the two companies was reported to be valued at $6 billion.
Ideanomics is widely considered as one of the leading company in terms of global financial technology and asset digitization. The company focuses on the distribution and production of digital assets. The company's deal with First Auto Loan will run for three years.
Based on the terms between the two companies, Ideanomics will tap its massive global strategic alliance network in order to create two distinct financing campaigns. The first of which will focus on China's domestic market. The second will have its focus directed into several global markets.
The deal also stipulates that Ideanomics will hold exclusive rights for all financing activities outside of China. In addition to this, Ideanomics will collaborate on all financing activities that will be made in China's domestic market.
In terms of value, financial activities within China will amount to 35 billion Yuan or approximately $5.1 dollars. This will run through a three-year period. In terms of the global market, Ideanomics will spend $1 billion over the same period.
Many observers have noticed that the financial agreement used by Ideanomics was imposed in order to ensure the compliance which regards to electric vehicle upgrades in the Chinese ride-sharing market. This includes Didi-Uber and Capital, two of China's biggest ride-sharing platforms.
The stipulation to include China's biggest ride-sharing platforms comes as a no-brainer. Many market analysts have stated that China is the world's largest market when it comes to ride-sharing. A massive market with a reported revenue of $29.7 billion in 2018. This is a massive uptick compared to the ride-sharing market of the United States which is expected to post a revenue of $17.2 billion in 2018.
Moreover, market analysts are positive that the Chinese ride-sharing market will have an annual growth rate of 18 percent through 2022. The market's value is expected to reach a massive $58 billion over the same period.
In a statement, Ideanomics Chairman and co-CEO Bruno Wu said that the company is highly positive with the recent deal with First Auto Loan. Mr. Wu added that this will allow the two companies to push forward with the development and implementation of the blockchain-based financial services pioneered by the company.
