WeLab Secures $220M Funding from HSBC and Prudential Amid Asia's Digital Banking Expansion

Hong Kong fintech company WeLab has secured $220 million in a combined equity and debt financing round backed by major financial institutions including HSBC Holdings Plc and Prudential Hong Kong Ltd. This represents the largest funding round in WeLab's history and signals robust investor confidence in Asia's rapidly growing digital banking sector.

Funding Structure and Strategic Investors

WeLab operates two fully licensed digital banks: WeLab Bank in Hong Kong and Bank Saqu in Indonesia. The $220 million capital injection combines equity investments with debt financing, though specific allocation details weren't disclosed. HSBC's participation is particularly notable as it represents a strategic investment from one of Asia's largest traditional banking institutions. Prudential Hong Kong's involvement further validates the insurtech synergies possible within WeLab's ecosystem.

Market Position and Expansion Strategy

Founded in 2013, WeLab serves over 60 million registered users across its platforms. The company has processed more than $15 billion in cumulative loans since inception. This new funding will accelerate expansion in WeLab's core markets:

• Hong Kong: Where WeLab Bank competes with other virtual banks like ZA Bank and Mox
• Indonesia: Bank Saqu targets Southeast Asia's largest economy with its 280+ million population

Digital banking adoption in Asia Pacific is projected to grow at 13.7% CAGR through 2028 (Statista), fueled by high smartphone penetration and underbanked populations. Indonesia's digital banking transaction value alone is expected to reach $93.3 billion by 2027.

Competitive Landscape

WeLab's funding comes amid intensified competition:

• Traditional banks are increasing digital investments (HSBC allocated $6B+ to tech in 2025)
• Southeast Asian super apps like Grab and GoTo expand financial services
• Neobank valuations remain strong (Brazil's Nubank at $53B market cap)

The capital advantage allows WeLab to scale AI-driven credit assessment models that have reduced loan approval times to under 10 minutes while maintaining non-performing loan ratios below 3% - outperforming regional averages.

Strategic Implications

1. Partnership Validation: Banking giants backing a digital-native firm signals industry convergence between traditional and challenger banks
2. Debt Market Access: Securing institutional debt financing demonstrates maturity and creditworthiness rare among fintechs
3. M&A Potential: Warchest positions WeLab for strategic acquisitions in compliance tech or regional expansion
4. Profitability Path: CEO Simon Loong confirmed funds will accelerate the company's timeline to sustained profitability

Regulatory filings show WeLab's Hong Kong operation became EBITDA-positive in 2025, while Indonesia's operation is projected to reach breakeven by late 2026. The company now joins Airwallex and Stripe as fintechs securing $200M+ rounds during the current funding winter.

With this capital infusion, WeLab strengthens its position as a leading pan-Asian digital banking platform poised to capture market share in two of the region's most dynamic financial markets. The participation of blue-chip financial institutions underscores growing recognition that hybrid digital-traditional banking models represent the future of financial services in emerging economies.