Following the successful launch of WeLab Bank in Hong Kong, WeLab, a major pan-Asian fintech platform, announced the acquisition of PT Bank Jasa Jakarta (BJJ), an Indonesian commercial bank, with intentions to build its second digital bank in Asia.
WeLab, based in Hong Kong, has gathered a big number of existing and new investors, with a total commitment of $240 million, making this the largest fintech fundraising in Indonesia in 2021.
The funds will be utilized to purchase controlling stakes from existing shareholders as well as to invest in technology.
Indonesia is a vast market with a lot of potential for providing innovative and accessible digital banking products. The country, which has roughly 180 million tech-savvy young people, is one of Asia’s most neglected financial markets. 77 percent of the population is unbanked or underbanked, according to estimates.
With the new digital banking services, WeLab hopes to assist meet these unmet demands and close the financial inclusion gap.
In the second part of 2022, WeLab wants to open its second digital bank in Asia. It has a leg up on the competition because of its proven technology, operational competence, and experience in establishing and maintaining a digital bank.
WeLab Sky Limited (“WeLab Sky”), a WeLab-led consortium, has agreed into a Share Purchase and Subscription Agreement with all of BJJ’s shareholders for this transaction.
WeLab Sky will buy BJJ’s stakes in order to become the single controlling stakeholder, according to the deal. WeLab Sky has already finalized the strategic investment for a 24 percent stake in BJJ as the first step.
The remaining stake for majority control will be completed once all necessary regulatory clearances have been obtained, including from Indonesia’s Financial Services Authority (“Otoritas Jasa Keuangan”).
Since launching WeLab Bank in Hong Kong in 2019, the company has amassed over 150,000 digital banking customers, providing users with a new intelligent banking experience through a full range of digital banking services.
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