WeLab Ltd., Hong Kong’s largest online lending platform, secures $260 million in asset-backed financing from Citigroup. Global banking giants such as Citigroup are still seeing the potential of digital lending platforms like WeLab.
According to people who asked not to be named because the transaction is private, Citigroup is the only senior underwriter. Representatives from Citigroup and WeLab, based in Hong Kong, chose not to respond.
This movement highlights the increasing power and confidence in virtual banks. WeLab, a notable name in this domain, is working from the Hong Kong Cyberport and is one of the founding members of the Hong Kong Web 3.0 Association.
WeLab’s loan balance growth this year has outpaced pre-pandemic levels thanks to its alliances with multinational companies like Apple Inc. and Tesla Inc. Supported by tycoon Li Ka-Shing and Sequoia Capital, the company has seen a 37% increase in loans year over year, and its delinquency rates are significantly lower than the industry average.