(Yicai Global) March 31 -- Chinese ride-hailing giant Didi Chuxing has purchased a second-largest stake in Hangyin Consumer Finance to secure a consumer finance license, following other internet giants, including the operator of Weibo andXiaomi.

The Beijing-based company's unit received approval on March 26 from the Zhejiang province-based bureau of the China Banking and Insurance Regulatory Commission to buy a stake in Hangyin, according to the regulator's statement.

The Hangzhou-based company's registered capital rose to CNY2.6 billion (USD396.2 million) from CNY1.3 billion as the ride-hailing firm's unit Dirun Tianjin Technology was listed as another shareholder, based on the same statement.

Established in December 2015, Hangyin counts Bank of Hangzhou as its largest shareholder even after the investment. But the lender's stake will fall to 35.1 percent from 41.7 percent. China Yintai Holdings’ shareholding changes to 20 percent.

Regulators have issued more consumer finance licenses to leading internet companies in recent years. Sina has invested in Mengshang Consumer Finance, Baidu's fintech arm Duxiaoman Financial has bought a stake in Harbin Bank Consumer Finance, and Xiaomi established Xiaomi Consumer Finance in January 2020.

Because of the intensifying rivalry between online and offline consumer loan providers, traditional institutions could cooperate with internet companies to combine their advantages in capital and technology, according to Industrial Securities.

Editor: Emmi Laine, Xiao Yi