Validus Group, a Singapore-based digital lending platform for SMEs, has secured a total of US$17.57 million in loans from both Oikocredit and FMO to support Indonesian SMEs.
Oikocredit announced a €2.4 million (US$2.57 million) loan maturing in 2027. ValidusThis is the first fintech loan in Southeast Asia.
With this funding, Validus’ Indonesian subsidiary Batumbuaiming to expand its reach and support more local businesses.
The collaboration between Oikocredit and Validus aims to address the financing gap for small and medium-sized enterprises in Indonesia, where many struggle to access financing from commercial banks due to data and risk issues.
Reza Pelagia Almadi
Reza Pelagi Almadi, Managing Director and Deputy CEO of Batumbu, said:
“Our partnership with Oikocredit marks an important milestone in our efforts to bridge the financing gap for Indonesian SMEs.
Oikocredit’s support will enable Batumbu to better position itself to provide customized lending solutions to underserved SMEs in several Indonesian provinces with low bank presence, driving financial inclusion and fostering entrepreneurship. Together, we aim to make a lasting impact on the Indonesian economy.”
In a separate move, Dutch entrepreneurial bank FMO provided Validus with a $15 million loan.
FMO has been investing in Validus since 2019 and this new debt financing aims to support the underserved segment of Indonesia’s SMEs.
The collaboration aims to bridge the financing gap faced by SMEs through Batumbu and promote economic growth and sustainable development in the region.
Grant Saputrahadi Tan
“Our partnership with FMO marks a major step forward in our mission to solve the financing gap for Indonesian SMEs.
“FMO’s support will enable Batumbu to expand its reach and provide more tailored financing solutions to SMEs to drive innovation and entrepreneurship. Together, we are committed to making a lasting positive impact on the Indonesian economy.”
“We are delighted to be partnering with Batumbu to bring our innovative solutions to the global market,” said Batumbu Director and CEO Grant Saputrahadi Tan.
Batumbu has been profitable for more than two years, maintaining EBITDA margins above 50%, and its parent company, Validus, has provided more than $3.5 billion in loans to small and medium-sized enterprises in Southeast Asia since its inception in 2015.
Featured Image Credit: Edited from Freepik
