GXS Bank announced Monday that it has received regulatory approval to acquire Validus Capital Pte Ltd, the Singapore subsidiary of Validus Investment Holdings Pte Ltd (Validus Group).

The firm said in a statement that with the acquisition, small- and medium-sized enterprises (SMEs) can lean on GXS Bank to support their diverse business and financing needs across their growth stages.

It is noted that GXS Business Banking positioned to serve SMEs across all stages of growth.

GXS Bank already serves single ownership businesses, such as sole proprietorships, through the GXS Biz Account and the GXS FlexiLoan Biz.

The GXS Biz Account is an operating account that offers daily interest crediting and charges no fees while the GXS FlexiLoan Biz is an unsecured line of credit.

The bank will now be able to serve larger SMEs who are looking to optimize their cash flow and tap timely financing to capture business opportunities through short-term trade finance and supply chain financing.

These financing options will be powered by Validus Capital as a wholly-owned subsidiary of GXS Bank.

According to the statement, this acquisition is the first such acquisition of a local financial technology (fintech) company by a homegrown digital bank in Singapore.

Validus Capital is one of Singapore’s largest digital lending platforms for SMEs.

Since being established in 2015, Validus Capital has disbursed more than $1 billion in supply chain financing and working capital loans to thousands of SMEs here.

The acquisition is an all-cash deal that is set to be completed on 15 April 2025.

Following which, Validus Capital will become a wholly-owned subsidiary of GXS Bank.

“There are significant synergies from this acquisition. As a bank, we are leveraging our balance sheet strength, digital ecosystem, and regional network to enhance and extend Validus Capital’s digital lending solutions to more SMEs in the region,” said Muthukrishnan Ramaswami, Group Chief Executive Officer, GXS Bank.

According to him, Validus Capital’s suite of financing solutions enables GXS Bank to help SMEs unlock cash flows in a timely manner.

“Instead of waiting for payment for work done or goods supplied, SMEs will be able to take advantage of our supply chain finance and working capital loans, powered by Validus Capital,

“The sooner they receive capital, the faster they can invest in growth opportunities,” he added.

Nikhilesh Goel, Co-Founder and Group Chief Executive Officer of Validus Group said, the firm has pioneered the anchor-led supply chain model for fintech lending across ASEAN, and in Singapore in particular it has built a comprehensive SME business leveraging its capabilities in technology, data science and artificial intelligence (AI).

“We are pleased to partner with GXS Bank which shares our passion for financial inclusion across the underserved SME segment, and their acquisition of our Singapore business is a testament to the strong potential of the Validus model,” he added.

According to him, Validus Group will continue to be headquartered in Singapore and will redouble its commitment to its core markets in Indonesia (where we operate under the brand Batumbu), and Thailand where the untapped addressable markets are much larger and deeper.

“Batumbu has been highly profitable for the last three years and with this reorganization, Validus is now profitable at a group level – one of the few fintechs in the region to have achieved this milestone,” he added.

Vishal Shah, Group Head of Business Banking, GXS Bank, said adding Validus Capital’s trade finance and value chain-led lending solutions into the firm’s suite of business banking offerings will enable the firm to comprehensively serve the diverse needs of micro, small- and medium-sized businesses.

“Together with our existing innovations such as instant digital account opening and daily interest crediting for a business operating account, we are ready to serve SMEs across all stages of growth,

“Our trade finance and supply chain offerings will be available in Singapore and rolled out progressively in the region in the coming months,” he added.

As part of a regional network of digital banks, GXS Bank also works closely with GXBank, its subsidiary in Malaysia and Superbank, a digital bank in Indonesia.

According to the statement, the integration of Validus Capital into the GXS Bank family is expected to be completed by the end of the year.

GXS Bank and Validus Group are committed to ensuring that the transition will be seamless for Validus Capital’s existing customers, partners and vendors.

All existing loans disbursed by Validus Capital will continue to be serviced without disruption.

GXS Bank is a digital bank owned by a consortium consisting of Grab Holdings Inc. – Southeast Asia’s super app, and Singtel – Asia’s communications technology group.

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