Virtual Banking

WeLab Raises US$ 156 Million — Gearing up To Launch WeLab Bank by 2020

WeLab, one of the 8 companies granted license from the HKMA to operate a virtual bank announced today that it has raised US$ 156 million ( HK$ 1.2 billion) of Series C strategic financing, which makes it one of the largest fintech fundraising rounds in Greater China.

This round drew the backing of new investors as well as five existing investors, including Alibaba Hong Kong Entrepreneurs Fund and China Construction Bank (International) amongst others, who made follow-on investments, validating WeLab’s accomplishments and demonstrating confidence in WeLab’s future prospects.

Simon Loong

“This financing will be used to further develop and broaden our platform as a fintech enabler. Further investment into technology research and development will enable us to apply these innovative technologies around the region and roll out additional products and services for our customers to provide holistic financial services digitally,”

said Simon Loong, Founder and Group CEO of WeLab.

In July, the company said that it was eyeing to launch their virtual bank by this year, however political instability seemed to have delayed the launch from many of Hong Kong’s virtual banks.

Of the 8 virtual banking licensees in Hong Kong WeLab is the only homegrown startup. Being pitted up against consortiums of large banks and bigtechs like Ant Financial and Ping An the US$ 156 Million funding could certainly come in handy.

In a media statement the group shared that it is aspiring to further develop and broaden the platform as a fintech enabler with the following three key targets: to launch WeLab Bank in 2020; further expand China’s B2B business partners to over 1,000 and offer our proprietary privacy computing solutions to enterprises on the cloud platform in 2H 2020, and aim to enter another South East Asia market beyond Indonesia within the next two years.