Validus, a digital lending platform based in Singapore that focuses on small and medium businesses, received $50 million in debt financing from HSBC as part of the ASEAN Growth Fund strategy.
The company, Validus, will use the funds to help micro, small, and medium enterprises (MSMEs) in Indonesia access financial resources, addressing the challenges they often encounter in this area.
Indonesia has around 64.2 million MSMEs, which contribute 61% to the country’s GDP. These businesses employ about 119.6 million people, making up 97% of the total workforce in Indonesia. However, only around 17.5 million MSMEs are involved in online operations and e-commerce. Traditional banks have strict requirements for financing, hindering many MSMEs from accessing the necessary funds.
Validus was founded in 2015 in Singapore by Vikas Nahata (Executive Chairman) and Nikhilesh Goel (CEO). They created a lending model that focuses on the supply chain and utilizes non-traditional data sources through partnerships with banks and institutions. The company has now expanded to Indonesia, Thailand, and Vietnam.
Nikilesh Goel emphasized the importance of providing stable working capital to small businesses to enable growth and job creation in Southeast Asia. Validus serves as a primary digital SME financing provider across ASEAN.
The platform caters to MSMEs in need of short-term working capital, with major international institutions and local banks participating as lenders. Unique partnerships throughout Southeast Asia set Validus apart from other SME financing platforms in the region.
Validus has experienced significant growth in revenue and net profits over the past three years. Its Indonesia business has been net profit positive since 2022, contributing to positive cash flow for the group.
Currently, Validus has more than 300 employees across five countries and has raised approximately $75 million in total equity funding. Previous investors in the company include Vertex Ventures, FMO, and several financial institutions.
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