VALIDUS has secured a debt facility of up to US$50 million from HSBC under the lender’s Asean growth fund strategy.
Proceeds will be deployed through Validus’ Indonesian subsidiary Batumbu to micro, small and medium-sized enterprises (MSMEs) to help these smaller businesses with access to financial resources, the digital financing platform said on Friday (Aug 30).
Validus said: “By offering more accessible financing options, this debt facility will be purposed for supporting Indonesian MSMEs in overcoming financial barriers and enhancing their role in driving the country’s economic development, while also addressing the financing gap in Indonesia.”
Batumbu is Indonesia’s largest digital financing platform for small to medium-sized enterprises (SMEs).
Validus said the subsidiary has grown its profits in the last two years, and consistently achieved earnings before interest, taxes, depreciation and amortisation (Ebitda) margins of more than 50 per cent.
The co-founder and group chief executive of Validus, Nikhilesh Goel, said: “By leveraging Batumbu’s unique position as the largest and only profitable digital SME financing platform in the country, we are committed to unlocking new opportunities for businesses, driving economic growth, and enhancing financial inclusion.”
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With the loan facility, HSBC Singapore’s head of corporate and business banking, Harish Venkatesan, said Validus will play an “instrumental role in promoting financial inclusion to underserved small businesses in this region”.
He added that MSMEs play a key role in contributing to the long-term economic success in Asean and beyond.
Founded in 2015, Validus is headquartered in Singapore and has offices in Indonesia, Vietnam and Thailand. It holds a capital markets services licence by the Monetary Authority of Singapore, and also has regulatory approval in Indonesia and Thailand.
The fintech company uses data analytics and artificial intelligence to finance the SME sector, with funds from both individual and institutional investors.
