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Validus Secures Up to US$50M Facility from HSBC to Strengthen Digital Lending for MSMEs in Indonesia
Validus has secured a debt facility of up to US$50 million from HSBC under the ASEAN Growth Fund strategy to support financial inclusion for Indonesian MSMEs.
SINGAPORE, September 2, 2024 /EINPresswire.com/ — Validus, a leading digital SME lending platform headquartered in Singapore, today announced the establishment of a debt facility of up to US$50 million from HSBC under the ASEAN Growth Fund strategy and is aimed to support financial inclusion for micro, small and medium enterprises (MSMEs) in Indonesia, addressing their challenges in accessing financial resources.
The facility will be deployed through Validus' Indonesian subsidiary, Batumbu, which is currently the largest digital SME financing platform in Indonesia. Batumbu has seen growing profits for over two years and has consistently achieved EBITDA margins exceeding 50%.
By offering more accessible financing options, this debt facility will be purposed for supporting Indonesian MSMEs in overcoming financial barriers and enhancing their role in driving the country's economic development, while also addressing the financing gap in Indonesia.
According to a press release from Indonesiaâs Ministry For Economic Affairs, there are currently 64.2 million MSMEs that contribute 61 percent of Indonesia's GDP, absorbing 97 percent of the total workforce in the country. While a World Bank report highlights that Indonesian MSMEs face major challenges in securing financing due to the stringent requirements imposed by banks. Despite various government initiatives, MSME loans account for only about 20 percent of total bank loans. The International Finance Corporation estimates that the financing gap for MSMEs stands at approximately US$234 billion.
Nikhilesh Goel, Co-founder and Group CEO of Validus said âThis long-term partnership with HSBC builds on our ongoing efforts to bridge the financing gap for MSMEs in Indonesia. We will continue to pioneer innovations and drive advancements in the lending space. By leveraging Batumbu's unique position as the largest and only profitable digital SME financing platform in the country, we are committed to unlocking new opportunities for businesses, driving economic growth, and enhancing financial inclusion. We are honoured to work with HSBC on this pivotal initiative, which will enable Validus to make a larger impact on the Indonesian economy.â.
Harish Venkatesan, Head of Corporate and Business Banking, HSBC Singapore said âAs one of the leading MSME digital financing players in the ASEAN region, we are pleased to support Validus in playing an instrumental role in promoting financial inclusion to underserved small businesses in this region. MSMEs play a key role contributing to the long-term economic success in the ASEAN region and beyond. We look forward to supporting Validus in their mission to drive regional growth through the HSBC ASEAN growth fund.â
Since 2021, Validus has quintupled its total funds disbursed, reaching S$5.17 billion. Headquartered in Singapore, Validus has established its presence in Indonesia (Batumbu), Vietnam (Validus Vietnam), and Thailand (Siam Validus). The company is backed by strategic investors and VCs, including Vertex Ventures Southeast Asia and India, Vertex Growth, FMO, 01Fintech, NongHyup Financial Group, Norinchukin Bank, Aizawa Asset Management, Lotte F&L, AddVentures by SCG, VinaCapital Ventures, SEA Frontier Fund, K3 Ventures, and Openspace Ventures.
– END –
About Validus
Founded in 2015 to address the unmet financing needs of SMEs, Validus is today the largest SME lending marketplace in Southeast Asia, headquartered in Singapore, with a strong presence across Indonesia, Vietnam, and Thailand. An award-winning Fintech, Validus uses Data Analytics and AI to drive growth financing to the underserved SME sector via funds from individual and institutional investors. Validus holds a Capital Markets Services Licence by the Monetary Authority of Singapore (MAS) and has also received regulatory approval in Indonesia (OJK) and Thailand (SEC and BOT). For more information, please visit www.validus.sg.
About HSBC
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the worldâs largest banking and financial services organisations.
Rachel Soh
Validus
press@validus.sg
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Validus has secured a debt facility of up to US$50 million from HSBC under the ASEAN Growth Fund strategy to support financial inclusion for Indonesian MSMEs.
SINGAPORE, September 2, 2024 /EINPresswire.com/ — Validus, a leading digital SME lending platform headquartered in Singapore, today announced the establishment of a debt facility of up to US$50 million from HSBC under the ASEAN Growth Fund strategy and is aimed to support financial inclusion for micro, small and medium enterprises (MSMEs) in Indonesia, addressing their challenges in accessing financial resources.
The facility will be deployed through Validus' Indonesian subsidiary, Batumbu, which is currently the largest digital SME financing platform in Indonesia. Batumbu has seen growing profits for over two years and has consistently achieved EBITDA margins exceeding 50%.
By offering more accessible financing options, this debt facility will be purposed for supporting Indonesian MSMEs in overcoming financial barriers and enhancing their role in driving the country's economic development, while also addressing the financing gap in Indonesia.
According to a press release from Indonesiaâs Ministry For Economic Affairs, there are currently 64.2 million MSMEs that contribute 61 percent of Indonesia's GDP, absorbing 97 percent of the total workforce in the country. While a World Bank report highlights that Indonesian MSMEs face major challenges in securing financing due to the stringent requirements imposed by banks. Despite various government initiatives, MSME loans account for only about 20 percent of total bank loans. The International Finance Corporation estimates that the financing gap for MSMEs stands at approximately US$234 billion.
Nikhilesh Goel, Co-founder and Group CEO of Validus said âThis long-term partnership with HSBC builds on our ongoing efforts to bridge the financing gap for MSMEs in Indonesia. We will continue to pioneer innovations and drive advancements in the lending space. By leveraging Batumbu's unique position as the largest and only profitable digital SME financing platform in the country, we are committed to unlocking new opportunities for businesses, driving economic growth, and enhancing financial inclusion. We are honoured to work with HSBC on this pivotal initiative, which will enable Validus to make a larger impact on the Indonesian economy.â.
Harish Venkatesan, Head of Corporate and Business Banking, HSBC Singapore said âAs one of the leading MSME digital financing players in the ASEAN region, we are pleased to support Validus in playing an instrumental role in promoting financial inclusion to underserved small businesses in this region. MSMEs play a key role contributing to the long-term economic success in the ASEAN region and beyond. We look forward to supporting Validus in their mission to drive regional growth through the HSBC ASEAN growth fund.â
Since 2021, Validus has quintupled its total funds disbursed, reaching S$5.17 billion. Headquartered in Singapore, Validus has established its presence in Indonesia (Batumbu), Vietnam (Validus Vietnam), and Thailand (Siam Validus). The company is backed by strategic investors and VCs, including Vertex Ventures Southeast Asia and India, Vertex Growth, FMO, 01Fintech, NongHyup Financial Group, Norinchukin Bank, Aizawa Asset Management, Lotte F&L, AddVentures by SCG, VinaCapital Ventures, SEA Frontier Fund, K3 Ventures, and Openspace Ventures.
– END –
About Validus
Founded in 2015 to address the unmet financing needs of SMEs, Validus is today the largest SME lending marketplace in Southeast Asia, headquartered in Singapore, with a strong presence across Indonesia, Vietnam, and Thailand. An award-winning Fintech, Validus uses Data Analytics and AI to drive growth financing to the underserved SME sector via funds from individual and institutional investors. Validus holds a Capital Markets Services Licence by the Monetary Authority of Singapore (MAS) and has also received regulatory approval in Indonesia (OJK) and Thailand (SEC and BOT). For more information, please visit www.validus.sg.
About HSBC
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$2,975bn at 30 June 2024, HSBC is one of the worldâs largest banking and financial services organisations.
Rachel Soh
Validus
press@validus.sg
Visit us on social media:
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Legal Disclaimer:
EIN Presswire provides this news content “as is” without warranty of any kind. We do not accept any responsibility or liability
for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this
article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
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Christina Bennett
September 4, 2024 at 2:39 pm
In conclusion, Validus’s recent partnership with HSBC to secure a debt facility of up to US$50 million represents a significant step forward in enhancing financial inclusion for micro, small, and medium enterprises (MSMEs) in Indonesia. With the backing of this substantial fund, Validus aims to bridge the financing gap that many MSMEs face, thereby empowering them to contribute more effectively to Indonesia’s economic growth. The initiative not only underscores the importance of accessible financial resources for MSMEs but also highlights Validus’s commitment to innovation and leadership within the digital lending space. By leveraging their established platform, Batumbu, Validus is poised to unlock new opportunities for businesses in Indonesia, facilitating their growth and development while fostering a more inclusive financial landscape.
Esther Hughes
September 4, 2024 at 8:48 pm
In conclusion, Validus’s establishment of a US$50 million debt facility from HSBC marks a significant milestone in enhancing financial inclusion for micro, small, and medium enterprises (MSMEs) in Indonesia. As the largest digital SME financing platform in the country, Validus, through its subsidiary Batumbu, is well-positioned to address the substantial financing gap faced by Indonesian MSMEs, which are vital to the nation’s economic landscape. This partnership not only strengthens the foundation for economic growth but also underscores the commitment of both Validus and HSBC to fostering innovation and providing accessible financial solutions in the ASEAN region. As Validus continues to leverage its expertise and resources, it is poised to make a meaningful impact on the growth and sustainability of Indonesian businesses.
Steve Hughes
September 5, 2024 at 7:24 am
In conclusion, Validus’s recent acquisition of a US$50 million debt facility from HSBC marks a significant advancement in supporting micro, small, and medium enterprises (MSMEs) in Indonesia. By leveraging its leading digital lending platform, Batumbu, Validus aims to address the financial challenges faced by MSMEs and enhance their contribution to Indonesia’s economy. This partnership not only drives financial inclusion but also demonstrates a commitment to bridging the substantial financing gap that many small businesses encounter. With robust backing and a proven track record, Validus is poised to make a lasting impact on the financial landscape in the region, fostering growth and innovation among underserved markets.
Ted Jenkins
September 5, 2024 at 10:21 am
In conclusion, Validus’s recent partnership with HSBC to secure a debt facility of up to US$50 million marks a significant step towards enhancing financial inclusion for micro, small, and medium enterprises (MSMEs) in Indonesia. This funding will be channeled through Validus’s subsidiary, Batumbu, which has established itself as the largest and most profitable digital SME financing platform in the country. By addressing the persistent financing gaps that hinder MSMEs, Validus is poised to empower a critical segment of Indonesia’s economy that accounts for a substantial portion of its GDP and workforce. This initiative not only underscores Validus’s commitment to innovation in the lending space but also reflects a broader strategy to drive economic growth and support underserved businesses in the region.
paula hughes
September 5, 2024 at 11:47 am
In conclusion, Validus’ recent partnership with HSBC, securing a debt facility of up to US$50 million, marks a significant step forward in enhancing financial accessibility for micro, small, and medium enterprises (MSMEs) in Indonesia. This initiative not only addresses the pressing financing gap faced by these vital contributors to the national economy but also reinforces Validus’ position as a leader in the digital lending space. By leveraging its successful platform, Batumbu, Validus is well-equipped to empower Indonesian MSMEs, fostering economic growth and financial inclusion in a market that remains underserved. This collaboration highlights the commitment of both Validus and HSBC to drive regional development and support the essential role of MSMEs in the ASEAN economy.
Cynthia Parker
September 5, 2024 at 12:19 pm
In summary, Validus’s recent acquisition of a US$50 million debt facility from HSBC marks a significant advancement in digital lending for micro, small, and medium enterprises (MSMEs) in Indonesia. This partnership aims to enhance financial inclusion and address the existing financing gap faced by MSMEs, which are crucial to the country’s economic framework. As the largest digital SME financing platform in Indonesia, Batumbu is well-positioned to leverage this support to empower local businesses, drive economic growth, and enhance accessibility to essential financial resources. This initiative not only underscores Validus’s commitment to innovation in the lending space but also reflects HSBC’s dedication to fostering sustainable economic development in the ASEAN region.