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Tag: Validus

  • Validus’ Indonesia Arm Wins Lending License

    Validus’ Indonesia Arm Wins Lending License

    The platform, which caters to the financing needs of micro, small, and medium enterprises (MSMEs) in the country, experienced strong growth in 2020.

    Batumbu, a subsidiary of Singapore-based Validus, has received regulatory approval to operate as a licensed digital financing platform in Indonesia, it announced in a statement.

    With the license, the startup will ramp up efforts to improve financing access and financial literacy within business ecosystems across provinces in Indonesia, Jenny Wiriyanto, CEO of Batumbu said.

    Batumbu has disbursed over S$207 million ($153.76 million) to MSMEs since starting its operations in April 2019. In the past year, it has grown by some 650 percent as MSMEs pivoted their businesses amid the COVID-19 pandemic.

    The strong performance is expected to continue as economic recovery and activity picks up, Validus said.

    Our “glocal” structure gives us a strategic advantage in implementing best practices, strong credit models and governance framework across our markets, Ajit Raikar, Validus’ co-founder and executive chairman, said in the announcement.

    Launched in 2015, Validus has since facilitated over S$775 million in SME financing through its entities in Singapore, Indonesia, Vietnam, and most recently, Thailand.

    Validus is backed by the likes of Netherlands development bank FMO and Temasek Holdings’ Vertex Ventures and Vietnam’s VinaCapital.

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  • OCBC, Keppel, Validus Make Digital Banking Pull Out

    OCBC, Keppel, Validus Make Digital Banking Pull Out

    Despite initial interest, a consortium made up of Singaporean lender OCBC, marine giant Keppel and peer-to-peer lending platform Validus has decided not to pursue a digital banking license in the city-state.

    The decision against applying for a license is believed to be linked with an ongoing strategic review of Keppel’s core operations, according to a report, in the midst of a takeover via a partial offer by Temasek.

    The consortium was expected to leverage the network of small vendors from Keppel with financing through the Validus platform which houses several large corporates including shipyards and logistics firms. Effectively, the partnership would allow large corporates to take advantage of their blue chip status to provide financing to their small contractors and suppliers to ensure the completion of projects on schedule.

    The Monetary Authority of Singapore will issue just five licenses which include two full licenses, which covers retail banking, and three wholesale banking licenses. The latest reported interest came from a partnership between Grab and Singtel which envisions their establishment of a truly customer-centric digital bank.

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  • Singapore Fintech Firm Heading into Indonesia

    Singapore Fintech Firm Heading into Indonesia

    Following a successful Series B funding round, SME lending platform Validus Capital is launching in Indonesia. SME lending platform Validus Capital has launched in Indonesia, its first Southeast Asian market outside its home country of Singapore, the firm announced in a media release on Thursday.

    Launched in partnership with Indonesia’s Triputra Group under the name Batumbu, the financing platform connects domestic SMEs from sectors as diverse as food and beverage (F&B), services, engineering, to construction industries with accredited, institutional and high net worth investors.

    Leading the local management team is Sonny Christian Joseph, who has over 23 years in SME banking in Indonesia and was previously head of SME banking at Indonesian business bank BTPN.

    P2P lending platforms have gained popularity and have grown rapidly in Indonesia. In 2018, P2P lending platforms disbursed a total of US$1.4 billion (S$1.9 billion) in loans, representing a 681.25 per cent year-on-year growth, according to data from Indonesian financial services authority Otoritas Jasa Keuangan.

    «Our expansion into Indonesia serves as a significant milestone for us. Sharing our insights and applying key learnings from Singapore allows us to take a proven and sustainable business model and apply this to a larger market – a market where I have personally spent a few years helping SMEs to grow,» Ajit Raikar, Validus CEO and co-founder, said.

    Unlike traditional financing options and P2P lenders, Butumbu uses proprietary technology and credit scoring systems adapted and tailored to cater to the needs of SMEs in Indonesia. The firm said that  it will develop strategic partnerships with large corporations to ensure an extremely robust and scalable financing ecosystem.

    In February 2019 Validus recently raised US$15.2 million (S$20.5 million) in an oversubscribed Series B funding round led by Dutch public-private development bank FMO.

    Validus was founded in 2015 and is backed by the likes of Netherlands development bank FMO and Temasek Holdings’ Vertex Ventures. According to the company, it is Singapore’s largest peer-to-business lending platform, facilitating over US$147 million (S$200 million) in business financing to local SMEs in less than 18 months.

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  • Visa, Validus to provide virtual card solutions for SMEs

    Visa, Validus to provide virtual card solutions for SMEs

    Visa has teamed up with FinTech platform Validus to provide SMEs with virtual card solutions designed to help scale their businesses. The partnership seeks to unlock capital for SMEs to reinvest in their products and services.

    The solution has already been adopted by GroXers Inc Pte Ltd, a food and beverage distributor in Singapore.

    Under this partnership, Validus is working with Visa to facilitate immediate cash flow to SMEs with unpaid invoices in their payment cycles. By clearing invoices for SMEs using a Visa virtual commercial card, Validus helps SMEs expand faster and have a faster turnover for their products and services.

    The food & beverage (F&B) businesses, have to deal with a large number of buyers ranging from “Small businesses often face challenges such as access to capital to fund their business growth and this makes them vulnerable. Similarly, suppliers for these businesses may be challenged to provide adequate credit, as they do not have the skills to underwrite higher credit lines,” commented Vikram Kshettry, head of B2B Partnerships and Small Business Asia Pacific at Visa.
    “It is essential that businesses are able to access credit from specialist lenders to invest in their businesses, and for suppliers to be paid on time. The presence of such lenders, who can respond faster to business needs, is key to Singapore’s continued SME growth.”

    GroXers Inc, a leading enterprise run by well-known Singaporean entrepreneur, Nichol Ng, stated that the solution has freed up their cash flows considerably.

    “We have been looking for a solution that bridges the gap between our cash flow and account receivables and this is our biggest untapped asset. It is interesting to see how this solution has enabled us to receive our money faster and more seamlessl,” Ng aid.

    “At GroXers Inc, 100% of our receivables from B2B retailers are now on credit card payment. We genuinely feel that in today’s economy, we should free our time and cash flow to focus on growing our business.”

    Validus and Visa will look to increase their commitment to supporting SMEs in Singapore across a range of industries. This includes businesses that specialize in the distribution, services and manufacturing sectors.