Miguel Cordon · · 1 min readSingapore SME financing firm buys Citibank unit’s loan portfolio
Singapore-based Validus, a growth financing platform for small and medium-sized businesses, has said that it struck a deal to acquire the loan portfolio of CitiBusiness, the small banking unit of Citi Singapore, in the city-state.
Photo credit: Validus
Validus said the deal would strengthen its top line revenue, extend its customer base, and expand its own loan book. It would also mark the first acquisition by a Southeast Asian fintech firm of an established bank’s loan portfolio and customer base, the startup added.
Roy Phua, the Singapore head of mortgage and CitiBusiness at Citibank, said the loan portfolio’s sale is part of its previously announced plan to “wind down” the company’s small business banking unit following a strategic review.
The transfer of CitiBusiness’ loan portfolio to Validus is expected to be completed by April 2022. Financial details of the deal were kept undisclosed.
The announcement follows Validus’ acquisition of KlearCard, a business payments and expense management platform.
“As we continue our relentless focus on growth, today’s acquisition marks a new inflection point for us,” said Vikas Nahata, co-founder and executive chair of Validus.
See also: 2020 was brutal for P2P lending. Here’s how Validus recovered
Editing by Collin Furtado and Lorenzo Kyle Subido
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