Validus’ Indonesian arm receives full digital lending license from OJK

Validus’ Indonesian subsidiary Batumbu has received regulatory approval from the Indonesian Financial Services Authority (OJK) to operate as a licensed digital financing platform.

Photo credit: Batumbu

Having started its operations in 2019, Batumbu zeroes in on empowering the growth of Indonesian micro, small, and medium-sized enterprises (MSMEs).

With the license, it will build on its strategic partnerships to expand its reach and boost lending to more MSMEs in the local supply chain industry, said Batumbu CEO Jenny Wiriyanto.

It’ll also be ramping up efforts to improve financing access and financial literacy within business ecosystems across provinces in Indonesia.

The fintech firm claims it has disbursed over S$207 million (US$153.7 million) to date. Meanwhile, it helped MSMEs pivot their businesses and position for recovery and growth during Covid-19, which it says resulted in the company’s annual growth rising close to 650% in 2020.

Launched in 2015, Validus uses data analytics and artificial intelligence to drive growth financing to the underserved SME sector via funds from accredited individuals and institutional investors. It has also received regulatory approval in Singapore (Validus Capital) and Thailand (Siam Validus).

To date, it has facilitated over S$775 million (US$575.5 million) in SME financing across Singapore, Vietnam, Indonesia, and most recently, Thailand.

The firm has raised a total capital of around S$50 million (US$37.1 million) since its launch from investors such as the Vertex Ventures Southeast Asia and India, Vertex Growth Fund, Triputra Group, and Dutch bank FMO.

Currency converted from Singapore dollar to US dollar: US$1 = S$1.35.