Singapore’s largest SME financing platform for SMEs and accredited investors Validus Capital expands in Vietnam to help Vietnamese SMEs.
Founded in 2015, Validus capital is already the largest SME financing platform for small businesses and accredited investors in Singapore. By using data analytics and AI to avail growth financing to underserved SMEs, Validus looks to drive inclusive growth for SMEs and economies in the ASEAN region.
The financing platform first launched in Singapore and later in Indonesia under its arm Batumbu. Validus Capital’s expansion in Vietnam marks its third market in Southeast Asia. Validus looks to fill the US$21B SME financing market in Vietnam.
Validus claims that the SMEs is has supported in Singapore shows an impact wherein the SMEs annual revenue increased by 17% on average, contributed S$403 million to the city state’s GDP and supported more than 10,000 jobs in the country.
Validus wish to bring this positive impact all over Southeast Asia, including in Vietnam. “Helping our SMEs to grow will be crucial for Vietnam’s continued rise as a Southeast Asian economy,” said Tran Thi Thuy Ha, Chief Business Officer of Validus Vietnam.
“Validus is proud to be able to contribute to the growth of Singapore SMEs. We want to provide growing SMEs faster access to zero-collateral financing. The findings from Steward Redqueen’s study is a testament that our online financing solutions are on track to make a significant impact on plugging Singapore’s SME financing gap. As Validus prepares to apply for the Digital Wholesale Banking license in Singapore, we are confident that the socio-economic impact will be positively higher given the digital transformation that could be made possible through a digital banking license,” Vikas Nahata, Co-Founder and Executive Chairman of Validus Capital said.
According to the Asian Development Bank study in 2019, SMEs makeup 97% of the country’s total businesses but get access to only 22% of the entire bank lending.
“Many businesses continue to hold the belief that having debt on their balance sheet is detrimental. Our study reinforces that debt can be a growth-enabler when prudent capital management is exercised,” Nahata added
“Validus’ data-driven platform leverages artificial intelligence and machine learning to facilitate accessible and affordable business financing for SMEs. Their impressive track record as a fast-growing fintech company and the impact that they’ve delivered to date is a testament to their commitment and ability to successfully drive inclusive growth for SMEs across the region,” Trung Hoang, deputy managing director at VinaCapital commented.
According to Validus Vietnam, they plan to partner with corporates to provide SME growth financing to their vendors and subcontractors. Validus Vietnam will conduct the same proprietary technology and credit scoring system that they used in Singapore and Indonesia.
“In order for us to continue serving the SME community, we are partnering with banks and corporates who have SME vendor ecosystem to further facilitate affordable growth financing. This allows more SMEs to tide through Singapore’s challenging economic environment while bringing innovative ideas to fruition and grow their business,” Nahata stated.