Khazanah Nasional Berhad, the strategic investment fund of the Malaysian government, recently completed its first investment in China’s financial technology sector through investment in WeLab, one of China’s largest mobile lending and credit analytics platforms, via a special purpose vehicle.
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Khazanah led a consortium of investors, channeling US$160 million to WeLab in a series B fundraising. After this investment, Khazanah can benefit from exposure to China’s growing consumer loan market, which currently sees little participation from traditional banks.
“WeLab’s business model is attractive because the company co-operates with financial institutions to provide banking solutions on a purely online and mobile platform, while providing affordable credit to people who are unable to obtain financing through traditional channels,” said Tan Sri Azman Mokhtar, the managing director of Khazanah.
WeLab is also exploring a potential collaboration in online lending and direct banking with ING Bank, a member in the consortium. ING is a leader in financial innovation, possessing an online banking business.
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