New | WeLab raises 1 bn yuan in push to expand micro lending to China’s rural communities

Hong Kong internet finance startup WeLab, which has recently raised 1 billion yuan (HK$1.19 billion) in its series B financing, is tapping into China’s rural communities, providing micro loans to individuals who traditionally have had limited access to credit.

The investors in this round of fundraising include Dutch financial institution ING, Guangdong provincial government-backed Technology Group and Malaysian sovereign wealth fund Khazanah Nasional, WeLab founder and CEO Simon Loong announced in Beijing Wednesday.

Proceeds raised would be used in brand building and technology so as to support an expanded lending over an existing internet platform, Loong said.

Established in Hong Kong in 2013 and expanded to the mainland in 2014, WeLab positioned itself as a “pocket bank” providing micro loans for the youth, said Loong, a former Standard Chartered banker. Loon described his company as a “dark horse” in the internet finance sector.

“Students and young people aged between 20 and 35 will be our target customers as they are the major internet users on the mainland,” he said.

Loong also has plans to team up with the Postal Savings Bank of China, which controls WeLab’s strategic investor Ule, to provide lending business targeting rural residents.

The use of mobile lending could become more popular in rural area as traditional banking services were insufficient, Loong said.