DIANRONG, one of China’s biggest peer-to-peer (P2P) lenders, is shutting down 60 of its 90 offline stores and laying off an estimated 2,000 employees, a source with direct knowledge of the matter said Friday.

The shrinking of Shanghai-based Dianrong comes amid the multi-year crackdown on risky practices and excessive leverage in the financial system that has seen a wave of P2P company collapses.

The company was co-founded by Soul Htite, who was also behind U.S. online lender LendingClub Corp. It is backed by Singapore sovereign fund GIC Pte and Standard Chartered Private Equity.

When asked for a response to the store closures and layoffs, Dianrong said it would comment later.

P2P platforms gather funds from retail investors and loan the money to small corporate and individual borrowers, promising high returns. At its peak in 2015, the sector had about 3,500 businesses in China. The P2P industry had outstanding loans of 1.49 trillion yuan (US$217.96 billion) last year, far larger than the combined sector outside China.

Dianrong’s investors also included CMIG Leasing, a unit of China’s biggest private investment conglomerate, China Minsheng Investment Group (CMIG), Tiger Global Management, Japan’s Orix Corp. and CLSA, part of China’s CITIC Securities.(SD-Agencies)