Validus is reporting new capital from HSBC in the amount of USD $50 million. The funds will be utilized to provide online lending for micro, small, and medium enterprises (MSMEs) in Indonesia.
Validus, based in Singapore, will release the funds via its subsidiary Batumbu, which is said to be
the largest digital SME financing platform in Indonesia.
Validus shares that Batumbu has seen growing profits for over two years and has consistently achieved EBITDA margins exceeding 50%.
Validus adds that the Ministry For Economic Affairs in Indonesia, claims there are currently 64.2 million MSMEs that contribute 61% of Indonesia’s GDP, while driving 97% of the total workforce in the country. This highlights the vital nature of providing access to capital for smaller firms in the country. Currenlty only about 20% of bank loans are said to be filling the gap.
Nikhilesh Goel, co-founder and CEO of Validus, said the long-term partnership with HSBC helps to bridge the funding need as they generate innovations in the lending sector.
“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. We are honoured to work with HSBC on this pivotal initiative, which will enable Validus to make a larger impact on the Indonesian economy.”
Harish Venkatesan, Head of Corporate and Business Banking, HSBC Singapore, described Validus as one of the leading MSME online lenders in the ASEAN region, adding that they look forward to supporting the platform.
Since its inception in 2021, Validus has disbursed over S$5.17 billion.
