Jofie Yordan · · 1 min readValidus banks new funding to boost SME financing in Vietnam
Photo credit: Validus
Financing remains one of the challenges for SMEs in Southeast Asia. Many of them remain underserved due to difficulties in obtaining financing because of strict collateral requirements and complex screening processes.
Validus, a Singapore-based fintech firm, aims to tackle the issue. It uses data analytics, AI, and supply-chain partnerships to provide financing for SMEs in the region.
To support its business growth in Vietnam, which it entered in 2019, the company has secured a new investment from Japanese firm Reazon Holdings. The amount was undisclosed.
The Vertex Ventures-backed firm said that Reazon Holdings decided to invest in Validus Vietnam due to its “high market potential.”
With this investment, Reazon Holdings said it will actively support Validus Vietnam’s business, such as by sourcing financing for the fintech firm through its network.
In December 2023, Validus received US$20 million in an investment from 01Fintech, a private equity firm led by a former Ant Group executive. Validus has raised a total of around US$90 million in funding since its establishment in 2015.
The company recorded revenue of US$10.1 million, with a loss before income tax of US$13.4 million for 2022. In addition to Vietnam and Singapore, Validus also operates in Indonesia and Thailand.
See also: SME financing firm Validus improves loss margin, doubles revenue
Editing by Miguel Cordon and Dhania Putri Sarahtika
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