HSBC, Prudential in $220 Million Funding for Hong Kong's WeLab

Hong Kong-based fintech firm WeLab has secured $220 million in a funding round led by HSBC Holdings Plc and Prudential Hong Kong Ltd. The investment includes both equity and debt and is WeLab's largest round to date.

WeLab did not disclose its latest valuation, but insiders previously estimated it at around $2 billion. The company has a history of securing large rounds, including $75 million in 2021 led by Allianz X.

WeLab plans to use the capital to expand in Southeast Asia and support mergers and acquisitions. The firm already operates in Hong Kong and Indonesia through its digital banks, WeLab Bank and Bank Saqu.

Why Did This Happen?

The investment by HSBC and Prudential reflects growing interest in fintech expansion across Asia. WeLab's focus on digital banking and its large user base—70 million individuals and 700 enterprise customers— makes it an attractive target for institutional investors.

WeLab's strategy includes targeting Southeast Asia, a region experiencing rapid digital transformation. The company previously explored an IPO in Hong Kong but postponed the plan due to market volatility.

How Did Markets React?

HSBC's involvement in WeLab highlights its broader strategic shift in Asia. The bank is also reviewing its Singapore insurance business, potentially preparing for a sale.

At the same time, other regional players are pursuing growth. For example, Atome, a Singapore-based digital finance firm, recently secured a $345 million debt facility to expand its buy-now-pay-later services.

What Are Analysts Watching Next?

Investors are closely watching WeLab's valuation and expansion progress. If the company continues to attract large rounds, it could position itself for a future public offering.

HSBC's strategic review in Singapore, including its insurance business, could lead to significant restructuring. The bank is also expanding into structured capital opportunities, reflecting a broader trend in Asia.

Other regional players, like GlobalTech Horizons Asia (GTH-Asia), are also scaling their structured capital deployment strategies. GTH-Asia is now evaluating up to $100 million in structured capital opportunities across Southeast Asia.

Analysts are also watching how regulatory changes and market conditions affect fintech expansion. Southeast Asia's growing digital economy is a key area of interest for both traditional and new entrants.