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After a brutal 2020 that saw lending volumes shrink by nearly 75% during the pandemic, digital financing platform Validus bounced back in 2022.
The Singapore-based company almost doubled its revenue between 2021 and 2022 on the back of strong lending momentum from SMEs.
Despite macro headwinds this time around, the fintech firm appears resilient: Validus is expecting to achieve profitability on an EBITDA basis by the fourth quarter of 2024.
Today we look at:
- How Validus nearly doubled its revenue in 2022
- Flash Coffee finds a lifeline in Thailand
- Other newsy highlights such as PropertyGuru’s net income reversal and CoinGecko’s recent acquisition of Zash
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Validus’ path to profit
Image credit: Timmy Loen
Vertex Ventures-backed Validus, which offers loans and other financial services to SMEs, grew its loan book by 80% year on year in 2022. The firm is projecting to be cash flow positive and EBITDA profitable by the end of next year.
- Doubling of revenue: Between 2021 and 2022, Validus – which operates in Singapore, Indonesia, Vietnam, and Thailand – nearly doubled its revenue to US$10.1 million. At the same time, its loss margin improved from -255% to -132%.
- Growing beyond loans: While the company’s main revenue sources are commissions and interest income on loans, Validus has broadened its offerings. Last year, it introduced neobanking products such as business accounts, corporate cards, and expense management tools.
- A hybrid approach: Beyond facilitating loans beyond lenders and borrowers, Validus has started to lend directly from its balance sheet. Year on year, its average balance sheet loan has grown by 60%.
Read more: SME financing firm Validus improves loss margin, doubles revenue
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