Singapore’s Validus extends SME financing platform to Vietnam

Singapore-based Validus, a financing platform for small and medium-sized enterprises, has launched in Vietnam, its third Southeast Asian market after Indonesia with Batumbu earlier this year.

From left: Validus co-founders Vikas Nahata, Ajit Raikar, and Nikhilesh Goel / Photo credit: Validus

Founded in 2015, Validus uses data analytics and AI to drive growth financing to SMEs. The Vertex Ventures-backed company claims to have facilitated over S$300 million (US$220.5 million) in business financing to Singaporean SMEs to date.

With Validus Vietnam, the company plans to tackle the country’s US$21 billion SME financing gap. According to a March 2019 report by International Finance Corporation, SMEs in Vietnam comprise about 98% of the country’s total enterprises, yet roughly 60% of them have unmet financing needs.

The peer-to-peer lender’s Vietnam arm also plans to work with corporates to provide SME growth financing to vendors and subcontractors.

Validus Vietnam will be led by Validus co-founder Nikhilesh Goel, who has over 14 years of experience in debt and equity financing, portfolio management, and value creation in the region under his belt.

According to a statement, Validus Vietnam will operate using the same proprietary technology and credit scoring systems currently being used in Singapore and Indonesia, but will be further adapted to the specific needs of SMEs in Vietnam.

In July 2019, Validus announced its plans to apply for a digital banking license in Singapore after the Monetary Authority of Singapore announced that it will issue up to five new licenses, including two digital full bank licenses and three digital wholesale bank licenses.

It was recently reported that multinational banking and financial services corporation OCBC is in discussions with Validus and Keppel Corp to apply for a digital wholesale banking license together as a consortium before the end of the year.