Validus, a Singapore-based digital lending platform for small and medium-sized enterprises, has secured debt funding of up to US$50 million from HSBC under the bank’s ASEAN Growth Fund strategy.
The funds will be used to expand financial access for Indonesia’s small and medium-sized enterprises (MSMEs) through Validus’ Indonesian subsidiary, Batumbu.
The funding assistance aims to support Indonesia’s SMEs by providing more accessible financing options, addressing financial barriers and promoting economic growth.
Batumbu has reported growing profits over the past two years, with EBITDA margins consistently exceeding 50%.
Since 2021, Validus has disbursed S$5.17 billion and operates in several countries, including Indonesia, Vietnam and Thailand.
Validus is backed by investors including Vertex Ventures Southeast Asia and India, Vertex Growth and FMO.
Nikhileth Goel, Co-Founder and Group CEO, Validus said:
“By leveraging Batumbu’s unique position as the country’s largest and only profitable digital lending platform for SMEs, we are committed to unlocking new opportunities for businesses, driving economic growth and strengthening financial inclusion.”
We are honoured to collaborate with HSBC on this vital initiative, which will enable Validus to have an even greater impact on the Indonesian economy.”
Harish Venkatesan, head of corporate and business banking at HSBC Singapore, said:
“As a leading MSME digital financing company in the ASEAN region, we are pleased to support Validus in playing a key role in promoting financial inclusion to underserved SMEs in the region.
“MSMEs play a vital role in contributing to the long-term economic success of the ASEAN region and beyond. We look forward to supporting Validus in its mission to drive growth in the region through the HSBC ASEAN Growth Fund.”
