WeLab raises $240M to buy Indonesian bank

Indonesia will soon get a virtual bank. WeLab, a Hong Kong-headquartered fintech unicorn, issued a statement announcing the purchase of Bank Jasa Jakarta (BJJ), an Indonesian commercial bank, on Tuesday.

With the agreement, WeLab plans to build a digital bank in the second half of next year to cater to the country’s massive unbanked population.

A WeLab-led consortium has raised US$240 million from existing and new backers, notably the largest fintech funding in Indonesia this year. The newly available funds will go toward acquiring BJJ’s stakes and “tech investments,” the firm indicated.

WeLab Sky, the consortium, will buy BJJ’s stakes and become the company’s single controlling stakeholder. WeLab Sky has already purchased a 24 percent stake in the bank, and the remaining shares will be transferred after regulatory licenses are obtained.

Last year, WeLab, which is backed by Hong Kong billionaire Li Ka-TOM Shing’s Group, launched its first digital bank in Hong Kong, a global financial center. In addition to the virtual bank and a loan product in its native city, the company currently operates a suite of consumer fintech products across Asia.