Hong Kong internet finance startup WeLab, which has these days raised 1 billion yuan (HK$1.19 billion) in its series B financing, is tapping into China's rural communities, offering micro loans to individuals who historically have had limited entry to credit score.
The traders during this round of fundraising include Dutch economic institution ING, Guangdong provincial government-backed technology neighborhood and Malaysian sovereign wealth fund Khazanah Nasional, WeLab founder and CEO Simon Loong announced in Beijing Wednesday.
Proceeds raised can be used in company constructing and know-how as a way to assist an expanded lending over an latest cyber web platform, Loong noted.
dependent in Hong Kong in 2013 and increased to the mainland in 2014, WeLab located itself as a "pocket bank" presenting micro loans for the youth, spoke of Loong, a former standard Chartered banker. Loon described his business as a "dark horse" in the information superhighway finance sector.
"students and young people aged between 20 and 35 may be our goal purchasers as they're the predominant information superhighway clients on the mainland," he said.
Loong additionally has plans to crew up with the Postal rate reductions financial institution of China, which controls WeLab's strategic investor Ule, to give lending enterprise focused on rural residents.
the use of cell lending could develop into extra time-honored in rural enviornment as typical banking functions had been insufficient, Loong mentioned.
WeLab has about 2.5 million clients in Hong Kong and the mainland. About 9 billion yuan worth of loans had been requested by means of its user base.
bad loans volume to about 1 per cent of the total issued, whereas no fraud losses had been stated. Loong says data analysis has helped the company to analyse customers' credibility and increase possibility management.
About 70 per cent of WeLab's lending is sourced from banks. Loon mentioned he plans to foyer for participation with the aid of mainland-primarily based banks, which have up to now not participated in extending credit.
Introducing the three new investors which had adventure in internet banking, micro financing and funding in a big range of monetary property would improvement WeLab's future development, Loong added.
Benoit Legrand, head of fintech at ING, talked about new know-how is advantageous in achieving people who in the past had little or no access to financial institution lending.
He brought that businesses like WeLab would be able to work together with normal banks instead of competing with them in these markets.
Loong mentioned the sequence B financing had yet to complete and was nonetheless in talks to introduce greater strategic investors.
The company last year raised US$20 million in collection A funding. The traders for this round included ICONIQ Capital, Sequoia Capital and TOM community which is controlled by using Li Ka-shing.
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