Sequoia, TOM Group support HK P2P lender WeLab
Sequoia Capital and Asian billionaire Li Ka-Shing's TOM Group have invested $14 million in WeLab, the start-up behind peer-to-peer (P2P) lending platform WeLend.hk, in a Series A round of funding .
Founded in Hong Kong in 2013 by a team of senior professionals from financial institutions such as Standard Chartered, HSBC, and Goldman Sachs, the company aims to disrupt the traditional credit services space by creating a seamless online and mobile lending solution for the Asian market.
According to a release, WeLab plans to use the funding to build more internet finance technology services for the region, including the launch of its latest product in mainland China that uses big data for credit risk modeling. The business has already established strategic partnerships with a variety of mobile, e-commerce, and financial companies that will offer insights into consumer behavior in the fast-developing China market.
"WeLab is Sequoia Capital China's first start-up investment in Hong Kong," said Neil Shen, founding and managing partner of Sequoia. "We are optimistic that the WeLab team, with its extensive internet and finance experience, can offer superior services targeting a young consumer base."
VC investment in P2P platforms is emerging as a ongoing theme in China. In April, Lightspeed China Partners led a Series B round of funding for PPDai, which claims to be China's first and largest online P2P platform. Other investors included Sequoia Capital and Noah Holdings.
Meanwhile, in January, Trustbridge Partners led a $130 million Series A round for Renrendai, claiming it was the largest transaction ever seen in the P2P space globally. This followed Northern Light Venture Capital's $12 million commitment to Dianrong while last November Softbank China Capital provided a Series A round of funding for Yooli,
CreditEase has received investment from IDG Capital Partners, Morgan Stanley Private Equity Asia and KPCB since its inception in 2006. It expanded quickly and now provides a range of consultation services, including wealth management, credit rating and microcredit lending.
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