Singapore fintech firm Validus hits $738m in loan disbursals to SMEs in Southeast Asia

Validus, a Singapore-based fintech firm, announced that it has made disbursals worth S$1 billion (US$737.5 million) in business financing to small and medium-sized enterprises (SMEs) across Southeast Asia over the last five years.

Photo credit: Validus

Validus said it has seen “record growth” in lending and reported the most recent quarter as its strongest to date, with total quarterly loan disbursements exceeding S$150 million (US$110.6 million). The company is currently lending twice as much as pre-pandemic levels, it claims. Its monthly loan volumes rose 300% in the last 24 months, while its default rate remained below 1%.

The fintech firm focuses exclusively on connecting accredited and institutional investors – including fund managers, family offices, and corporates – to SMEs that are seeking working capital and invoice financing loans.

“Our first S$1 billion took us five years. The next milestone of S$2 billion will take us only one year,” says Validus co-founder and CEO Nikhilesh Goel.

See also: 2020 was brutal for P2P lending. Here’s how Validus recovered

Currently, Validus operates in three countries in Southeast Asia: Indonesia (Batumbu), Vietnam (Validus Vietnam), and Thailand (Siam Validus). It counts companies such as ST Engineering, YTL PowerSeraya, and Siemens as partners, helping finance their supply chains.

Validus also plans on exploring expansion opportunities across Southeast Asia in the near future, specifically eyeing tie-ups with digital banks in certain markets. In May, Fasanara Capital, an alternative asset management firm based in the UK, injected S$50 million (US$37.4 million) into Validus’ businesses to boost lending to SMEs.

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