Singapore-based digital finance company Validus has obtained $50 million in debt financing from global bank HSBC. The funding will assist Validus in advancing its mission of increasing financial inclusion for small and medium enterprises (SMEs) across Indonesia.
SMEs make up a significant portion of Indonesia's vibrant economy, accounting for over 60% of GDP and employing the vast majority of the workforce. However, many SMEs struggle to access reasonably priced working capital needed to expand operations and create jobs. Traditional banks often have inflexible requirements around financial reports and collateral that exclude many small businesses.
Validus was established in 2015 with the goal of using innovative data technologies to evaluate and serve the financing needs of SMEs in a more inclusive manner. The platform partners with various financial institutions to provide these businesses with reliable short-term loans. Validus has since grown its services to other key Southeast Asian markets as well.
Company leadership explains the new funding will allow Validus to deepen its positive impact in Indonesia, where access to suitable financing remains a pressing challenge for economic development. Validus stands out through its wide network of over 100 partnerships and data-driven approach to assessing risk. The platform aspires to deliver $150 million in new loans monthly across the region.
After several years of steady growth, Validus now employs a team of more than 300 across multiple countries. Firm metrics point to increasing revenues, profitability and scale of operations. Validus is fully committed to leveraging cutting-edge technology in support of small businesses and economic empowerment across Southeast Asia. This latest round of financing will no doubt strengthen those ambitions.
