Heaptalk, Jakarta — Singapore-based digital SME lending platform Validus has established a debt facility of up to US$50 million from HSBC under the ASEAN Growth Fund strategy. This financing facility aims to support financial inclusion for Indonesian MSMEs and address their challenges in accessing financial resources.
The loan facility will be deployed through Validus’ Indonesian subsidiary, Batumbu, Indonesia’s most significant SME financing platform. Batumbu has seen growing profits over two years and consistently achieved EBITDA margins exceeding 50%.
“We will continue to drive advancements in the lending space. By leveraging Batumbu’s unique position as the country’s largest and only profitable digital SME financing platform, we will unlock new business opportunities, driving economic growth and enhancing financial inclusion. We are honored to work with HSBC on this pivotal initiative, which will enable Validus to impact Indonesia’s economy significantly,” Validus’ Co-Founder and Group CEO, Nikhilesh Goel, said.
This debt facility will offer more accessible financing options, 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.
Since 2021, Validus has quintupled its funds disbursed, attaining US$5.17 billion. Headquartered in Singapore, this fintech startup has broadened its presence in Indonesia (Batumbu), Vietnam (Validus Vietnam), and Thailand (Siam Validus).
Strategic investors and VCs, including Vertex Ventures Southeast Asia and India, Vertex Growth, FMO, 01Fintech, NongHyup Financial Group, Norinchukin Bank, Aizawa Asset Management, Lotte F&L, Addventures by SCG, VinaCapital ventures, SEA Frontier Fund, K3 ventures, and Openspace Ventures back the company.
In April 2023, Validus secured its first tranche of an undisclosed amount in a Series C-1 round. In December 2023, this fintech startup also received a new injection worth US$20 million from a growth-stage private equity firm, 01Fintech.
“We are pleased to support Validus in playing an instrumental role in promoting financial inclusion to underserved small businesses in this region. MSMEs play a key role in contributing to the long-term economic success in the ASEAN region and beyond. We look forward to supporting Validus in its mission to drive regional growth through the HSBC ASEAN growth fund,” Head of Corporate and Business Banking, HSBC Singapore.
