Validus, the Singapore-based digital supply chain financing platform, has announced a $30million investment in its Series D funding round led by Khazanah Nasional, Malaysia’s sovereign wealth fund.
Validus said in a statement Thursday that the investment will fuel the firm’s strategic growth in its core markets Indonesia and Thailand, following the divestment of its Singapore business to Grab’s digital bank, GXS, in April of this year.
The fresh funds will be used to scale up Validus’s business operations where it has projected to double its loan books over the next three years across Indonesia and Thailand as it continues to consolidate its market-leading positions in these two countries where the untapped addressable markets remain huge.
“We are thrilled to partner with Khazanah. Their disciplined, long-term investment approach and deep expertise in the financial services sector make them an ideal partner for us as we deepen our capabilities to provide impactful financing solutions to small and medium-sized enterprises (SMEs) in the region,
“This partnership will significantly advance our mission to drive financial inclusion and economic prosperity across Southeast Asia,” said Nikhilesh Goel, Co-Founder and Group Chief Executive Officer of Validus.
Founded in 2015, Validus an alternate lending platform in ASEAN to support SMEs.
The firm is a full stack vertically integrated lending ecosystem which encompasses an anchor-led supply chain financing model, proprietary data driven credit analytics, marketplace framework for institutional participation and sophisticated private credit structuring solutions.
It has disbursed over $5 billion in loans to SMEs to date.
The platform is used by regional and international banks, as well as major corporate anchor partners in Indonesia and Thailand, markets that collectively represent an immense
$46 billion supply chain financing opportunity in a landscape lacking established and credible fintech incumbents.
The firm’s differentiated model is underpinned by a robust ecosystem-driven supply chain financing model, proprietary credit underwriting algorithms backed by extensive alternative data sources, and unique end-use control mechanisms.
Its Indonesia business has been profitable for the last three consecutive years.
Avendus Capital acted as the exclusive financial advisor to Validus on this transaction.