WeLab, a Sequoia-Backed Startup, is Reportedly Seeking Funding at a $2 Billion Valuation

WeLab is considering a new funding round that could value the company at around $2 billion, according to sources familiar with the matter. The Hong Kong-based fintech firm has the backing of investors including Sequoia Capital and billionaire Li Ka-shing.

WeLab is looking to raise $200 million to $250 million in a new round of funding to accelerate its growth plans, according to sources familiar with the matter. The company has reportedly been in talks with both existing and new investors for the fundraising.

WeLab, founded in 2013, operates consumer credit platforms in Hong Kong and mainland China. It also runs WeLab Bank, a virtual lender in Hong Kong. The company has seen 1.5 times year over year growth in its loan balance in Hong Kong since the beginning of Covid-19, one of the people said.

We are still in the early stages of consideration and the details of the funding round could still change, according to sources. A representative for WeLab declined to comment.

In September, the company completed the acquisition of Indonesian commercial bank PT Bank Jasa Jakarta. It also has a joint venture with PT Astra International to operate a licensed online lending app.

WeLab has over 50 million individual users and over 700 enterprise customers, according to its website. Its investors include Khazanah Nasional Bhd. and Allianz SE. TOM Group Ltd., which is majority-owned by billionaire Li Ka-shing's CK Hutchison Holdings Ltd., is also backing the venture.

WeLab, a fintech firm, filed for an initial public offering in Hong Kong in 2018, but postponed the offering amid market volatility. Simon Loong, who founded WeLab and is a former Citigroup Inc. retail banker, said in an interview last year that the company could restart the IPO process in 2022.