SCB X, a holding company of Siam Commercial Bank and SCB X Group, has invested US$50 million via an indirect investment in Indonesia-based Bank Jasa Jakarta (BJJ) through WeLab Sky as part of SCB X's strategy to become a regional financial technology group.
Arak Sutivong, deputy chief executive of SCB X, said the indirect investment in BJJ is part of a move to become a major digital service platform, expanding its digital banking service in the region.
BJJ operates a traditional banking service and plans to transform into a digital banking platform to offer several financial services.
According to a press release issued on Monday, WeLab, a pan-Asian fintech platform, announced the completed acquisition of BJJ, together with PT Astra International Tbk (Astra), one of Indonesia's largest public companies.
The completed acquisition was approved by the Financial Services Authority.
For this transaction, a WeLab-led consortium -- WeLab Sky -- participated in the acquisition together with Astra's subsidiary PT Sedaya Multi Investama (Astra Financial).
The WeLab-led consortium has attracted widespread support from existing and new investors, including Allianz X, Boyu Capital, Horizons Ventures, SCB X Group and TFB (Taipei Fubon Bank) Capital.
In December 2021, WeLab entered into a share purchase and subscription agreement with the shareholders of BJJ, and completed a strategic investment for 24% of BJJ. With the acquisition completed, WeLab and Astra each hold 49.5% of BJJ shares.
The investment is Southeast Asia's largest digital bank M&A transaction in 2022. The shareholders aim to transform BJJ into an innovative digital bank in Indonesia, according to the release.
Mr Arak said SCB X Group recognises growth opportunities in the digital banking business in Indonesia. The market is still at a nascent stage with no established presence nor leader, he said.
"The deal allows SCB X Group to set a strong regional footprint in the digital banking arena as part of its goal of becoming a regional financial technology group. SCB X Group entered into Indonesia and other regional markets under a partnership model," said Mr Arak.
SCB X Group announced in February this year a $100-million strategic investment in Akulaku, Indonesia's leading digital financial solutions provider. He said the move highlights the growth of e-commerce across Southeast Asia. The group also invested in Gojek, the Indonesian unicorn startup.
