WeBank, Tencent Holdings Ltd.’s online banking affiliate, is set to raise over US$450 million in a new financing round led by Warburg Pincus, according to the Wall Street Journal citing people familiar with the matter.
Singapore’s state-owned investment firm Temasek Holdings Pte. Ltd. also participated in the round, which values Shenzhen-based WeBank at around US$5.5 billion including the fresh funds.
WeBank, which is 30% owned by Tencent, will likely use the fresh capital to expand its existing services including investment products, personal loan services, and others.
Major shareholders of WeBank also include investment holding company Shenzhen Liye Group and Shenzhen Baiyeyuan Investment, the parent company of Shanghai-listed Joincare Pharmaceutical Group Industry Co., Ltd.
Earlier this month, Ant Financial Services Group, the financial services arm of Chinese e-commerce giant Alibaba Group Holding, is reportedly seeking at least RMB10 billion (US$1.5 billion) in a second round of financing ahead of a planned initial public offering.
Around the same time, Shanghai Lujiazui International Financial Asset Exchange Co. Ltd., the online financial services platform backed by Ping An Insurance Company of China, Ltd., completed US$1.216 billion new round of financing at a post-money valuation of US$18.5 billion.