Photo credit: Validus
Validus has secured a debt facility of up to US$50 million from HSBC under the lender’s ASEAN growth fund strategy.
Proceeds will be deployed to MSMEs through Validus’ Indonesian subsidiary, Batumbu. The move is aimed at helping these small businesses with access to financial resources, the digital financing platform said on Friday.
Batumbu is Indonesia’s largest digital financing platform for SMEs.
Validus said the subsidiary has grown its profits in the last two years and consistently achieved EBITDA margins of more than 50%.
With the loan facility, HSBC Singapore’s head of corporate and business banking, Harish Venkatesan, said Validus will play an “instrumental role in promoting financial inclusion to underserved small businesses in this region.”
He added that MSMEs play a key role in contributing to the long-term economic success of ASEAN and beyond.
Founded in 2015, Validus is headquartered in Singapore and has offices in Indonesia, Vietnam, and Thailand. It holds a capital markets services license from the Monetary Authority of Singapore and also has regulatory approval in Indonesia and Thailand.
The fintech company uses data analytics and AI to finance the SME sector with funds from both individual and institutional investors.
See also: Malaysian insurance is set for a shake-up
This story was republished with permission from The Business Times. It was moderately edited to reflect Tech in Asia’s editorial guidelines.
Editing by Jaclyn Tiu
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