WeBank, the financial services affiliate of China-based internet group Tencent, is set to raise more than $450m in a round led by private equity firm Warburg Pincus, the Wall Street Journal reported yesterday.
The round, which also includes Singaporean state-owned investment firm Temasek, will value WeBank at $5.5bn post-money according to people familiar with the matter. It represents WeBank’s first extrernal funding and is expected to close this week.
Launched in June 2015, WeBank operates an online banking service, extending loans and offering investment products, though it may well seek to extend its range of services once the round is closed.
Tencent owns a 30% stake in WeBank, while investment firms Shenzhen Baiyeyuan Investment and Shenzhen Li Ye Group each hold 20% stakes. The WSJ did not reveal whether any of WeBank’s existing backers are taking part in the round.
WeBank is raising the cash at a time when rivals such as Ant Financial and JD Finance, backed by e-commerce groups Alibaba and JD.com respectively, are raising huge rounds of their own in a bid to stake their place in China’s online financial services sector.
China Renaissance and Bank of America Merrill Lynch are said to be advising WeBank on the transaction.