The new fund will be managed to enhance the product and service, expecting to present digital financial experience conveniently.
Heaptalk, Jakarta — Singapore-based SME growth financing platform Validus has secured its first tranche of an undisclosed amount in a Series C-1 round. The company will tackle this new injection to develop products and services further, focusing on enabling small businesses with faster and more convenient digital financing solutions.
The capital came from several new strategic investors, including NongHyup Financial Group, NorinChukin Bank, Aizawa Asset Management, and Lotte F&L Singapore. Multiple existing investors also participate in this C-1 round, spanning the Vertex Ventures SEA and India, Vertex Growth Fund, FMO, and VinaCapital Ventures.
In response to this fresh capital, the Co-Founder and Group CEO of Validus, Nikhilesh Goes, “As a group, we have demonstrated that we have a clear path to profitability, and we are on track to breakeven by 2024, with individual markets progressively achieving this milestone. Thus, we are heartened to have the support of our new and existing investors,”
Perceiving the challenging macroeconomic, particularly around the fundraising environment, Nikhilesh claimed that the company has continued to generate high-quality growth. Concurrently, he also affirmed the team had observed a positive trend around the entire business performance metrics, including loan book size, company revenue, and profitability, even when the company tightened the operational expenses.
During company operations, customers have granted excellent feedback on the simplicity of use and speed, proving Validus company to enhance a healthy growth in Gross Transaction Value (GTV) within only a few weeks of the company’s soft launch in August 2022.
“We are building on our robust foothold in SME lending, and our leading position as a credit-led, one-stop position as credit-led, one-stop financing solutions provider for SMEs is paying off. A clear executable vision within target segments, strong team morale, and a simple yet efficient working capital solution for the underserved SMEs have contributed to us emerging more robust than ever,” Validus’s Co-Founder and Executive Chairman, Vikas Nahata said.
Validus continue to deliver impact in its efforts to make digital financing more accessible and inclusive for small businesses. Since its establishment in 2015, Validus has disbursed over US$2 billion in loans to small businesses in Singapore, Vietnam, Indonesia, and Thailand.
Furthermore, the Partner of Vertex Ventures SEA and India, Genping Liu, observed Southeast Asia’s SMEs are the backbone of the economy. Yet, business owners constantly face critical issues, including a lack of access to credit and liquidity issues. Existing as the financing access app for SMEs, Liu recognized Validus had boosted financial inclusion in the region by providing collateral-free financing options and liquidity through access to a pool of investors.
“As one of Validus’s earliest backers, we have witnessed impressive growth and innovation from the team, including multiple strategic partnerships to expand their offerings. We are proud to support this company to be a key driver for SME growth in the region,”
Bolstering this round, the Senior Manager of the Digital Innovation Division at NorinChuckin Bank, Hiroki Kawabata, also realized the potential of Validus to be the leading full-fledged digital financing service for underserved SMEs in SEA. Through this investment activity, Kawabata emphasized amplifying this cooperation with the Validus team.
