- Temasek-backed Validus Capital topped over S$120m
in business funding
- Takes aim at plugging a S$20 billion a year
financing gap facing local businesses
- Media OutReach - 11 September 2018 - Singapore-based SME financing platform Validus Capital (Validus) has surpassed over S$120 million in funding for local
SMEs and businesses through its platform. It has financed more than 1,600 loans
to date, each of which was approved almost instantly (under 24 hours). The
average amount funded per request is S$70,000, with a high degree of
diversification across various industry classes.
of the company's growth is in tandem with Singapore SMEs' increased need for
growth capital, with a financing gap of around S$20 billion.
Established in 2015, Validus offers access to financing from accredited
individual and institutional lenders. Backed by Temasek Holdings' Vertex
Ventures and licensed by the Monetary Authority of Singapore, Validus combines
extensive experience in SME financing with a smart, data-driven approach. It acts
as a peer‐to‐business lending marketplace that reduces financial intermediation
costs -- the benefits of which are passed to both borrowers and investors. This provides
borrowers with quicker approval times and faster access to capital for business
expansion; while simultaneously allowing for less stringent requirements to
small businesses which have conventionally faced financing difficulties due to
lack of collateral or cash flow records.
on the company's momentum, Ajit Raikar, Chief Executive Officer and Co-Founder,
Validus, said: "We are immensely proud to have helped accelerate the growth of so
many of Singapore's SMEs, and yet we still have much work to do to empower many
more such businesses. We have innovations in the pipeline that will give SMEs
even more capital flexibility and choice to suit their business strategies,
accelerating Validus towards our billion-dollar financing milestone by
Lock Chua, CEO, Vertex Holdings said: "As
a lead investor and primary partner when Validus first started out, Vertex has
been able to see first-hand how it has positively impacted SMEs to accelerate
their growth and capabilities. While investment returns are important, what we value
the most are companies that solve challenges and have societal impact -- that's
exactly what Validus is doing."
has also worked with various partners such as Visa, EQ Insurance and National
University of Singapore (NUS) to create a better marketplace lending ecosystem
for its investors and borrowers. Just last year, Validus and Visa had launched
a virtual card-based solution to facilitate immediate and efficient cash flows.
with key banks in Southeast Asia, Visa and Validus are driving innovation in
lending to the small business community," said Vikram Kshettry, Head for B2B
Partnerships, Asia Pacific, Visa. "Electronic payments bring small businesses
greater efficiency, supporting them in capitalising on opportunities quickly
and accelerating their growth. The Validus and Visa partnership is also
delivering solutions that make it easier for banks and their small business
customers to access and use a range of data, providing them with new insights."
last 12 months, Validus has seen tremendous business momentum. It has forged
new partnerships with corporates including ST Engineering and SMRT to fund
their vendor base on a pre-approved basis and deepened its partnership with
Visa to provide SMEs with a virtual credit card-based solution to help SMEs
reinvest profits into business growth. Validus
went on to close a S$4M Series A round from Vertex Ventures, before partnering with
Lighthouse Canton Group to launch a S$20 million LCV Trade Finance Fund (which
will scale up to S$200 million) dedicated towards financing SMEs in Singapore.
in 2015 and backed by Temasek Holding's Vertex Ventures, Validus Capital is
Singapore's leading peer-to-business lending platform, connecting growing SMEs
to accredited investors and financial institutions. Validus acts as a catalyst
of sustainable growth for SMEs. Its online marketplace is powered by a
proprietary platform, and it leverages a secure and robust cloud infrastructure
as a delivery mechanism. In addition, Validus utilises a robust risk algorithm
that was developed in partnership with the Credit Research Initiative (CRI)
team of National University of Singapore's Risk Management Institute (NUS-RMI).
It utilizes AI and machine learning to make more informed and responsible
lending decisions. Validus is also the first platform in the region to offer
insurance cover for lenders (up to 90% capital protection for most invoice
financing facilities). Its data-driven, collaborative approach to business
lending has helped it to forge strong industry partnerships with many
established brands. One such partnership with Visa launched a virtual
card-based solution to help SMEs scale their business. A key differentiator for
the company is its ability to lend at bank-like rates due to its institutional
lenders, which include family offices and funds.
by the Monetary Authority of Singapore, Validus is also a member of the
Singapore Fintech Association. Please visit www.validus.sg for more details.