SINGAPORE - Media OutReach - 8 March 2019 - Validus Capital(Validus), Singapore's leading SME financing platform, has successfully raised US$15.2million (S$20.5 million) in an oversubscribed Series B funding round.

Validus Co-founders (from left) Vikas Nahata, Ajit Raikar, Nikhilesh Goel

Investment in Validus' Series B round was led by FMO,Netherlands' public-private development bank. FMO has over 300 investments inbanking and financial services institutions (BFSIs). Its investment in Validusmarked FMO's first fintech investment in Southeast Asia, a region which sawover US$5.7 billion infintech investments in 2017 according to KPMG. Participating investors alsoinclude Taiwan's Cathay Financial Holdings, Singapore's Openspace Ventures(previously NSI Ventures), Temasek investment arm Vertex Ventures, Thailand'sAddVentures by SCG and Vietnam's VinaCapital Ventures.

Founded in 2015 in Singapore, Validus brings together accreditedindividual and institutional lenders and SMEs. It obtained its CMS license fromMAS in December 2017. Since then, Validus has successfully topped US$133.1million (S$180 million) in business funding - a record for P2P business lendingplatforms in Singapore.

Ajit Raikar, Chief Executive Officer and Co-Founder, Validus Capitalexpressed his confidence in the company's future and talks about the strongglobal interest in Validus' Series B fundraising, "Southeast Asia is one of thefastest growing economic regions globally, where there is a clear need foralternative financing platforms such as Validus to complement the traditionalbanking and financial infrastructures. Having a strong team, technology anddata science capabilities has allowed us to partner with strategic globalinvestors for our next growth stage. This reaffirms that we are well on trackto deliver on our strong growth forecasts, and our ambition to become a digital'bank-like' fintech for underserved SMEs is well supported with two leading sovereignfunds investing into Validus."

According to Deloitte, SMEs contribute around 40per cent of Southeast Asia's gross domestic product (GDP) and employ 70 percent of the region's workforce. Despite the importance of SMEs regionally,support is generally lacking, particularly in terms of business financing. McKinsey Global Institute reportedthat 39 million Southeast Asian SMEs (or 51 per cent) lack access to credit. P2PLending has emerged as a popular alternative financing option for SMEs inSoutheast Asia to service this unmet business financing gap. Per EY, around 68 per cent of theregion's SMEs are receptive to tap into alternative financing options,including P2P Lending.

"Validus is particularly well-positioned to lead the P2P Lendingindustry's change in Southeast Asia and spearhead financial inclusion among theunbanked and underserved businesses in the Region in a more digital way. Theirplanned expansion to Indonesia and Vietnam will strongly contribute to jobcreation by SMEs in these countries. We are excited to embark on this digital journeywith Validus and their very strong shareholder base, as they continue on theirsteady and sustainable growth trajectory," said Linda Broekhuizen, ChiefInvestment Officer, FMO.

Hoang Duc Trung, VinaCapital VenturePartner, adds, "As part of VinaCapital Group, we aim to boost and do what'sbest for the business community in general, and Vietnam, in particular. We areexcited to partner with Validus to empower greater business growth in theregion."

With fresh funding, Validusis looking to invest heavily in technology innovation, particularly aroundartificial intelligence and machine learning to help make business financingeven more convenient and safe for SMEs. It will also fund their Southeast Asiaexpansion, starting with Indonesia this year, followed by Vietnam.

Nikhilesh Goel Co-Founderand Chief Operating Officer at Validus Capital, whose background is in privateequity shared, "Ourstrategic approach in fundraising goes deep beyond the size of the investment.We look for partners who share our vision in driving inclusive growth in theregion, who are able to offer the value-add and guidance needed. The strongpartnerships we've built with our investors will not only help us to strengthenour technology and regional expansion but also provide the deep-seated connections and valuable advice across areas like businessdevelopment, capital funding and recruitment, areas which are vital for thegrowth of the company."  

Over the past year, Validus has enjoyed atremendous series of successes where it has become Singapore's top SME P2P Lendingplatform. Two new products were introduced, namely Working Capital Financingand Purchase Order Financing. It experienced exponential growth in terms of loanswhere almost 2,000 loans were disbursed in 2018, representing a 260 per centincrease year-on-year (y-o-y) while disbursement volume increased 350 per centy-o-y. Overall, over 300,000 Singaporeans were directly and indirectlypositively impacted with the Validus platform and their growth numbers forecasta direct impact to the country's gross domestic product. Manned by anexperienced SME lending team that looks beyond financial data, into behaviouralpatterns, Validus continues to be a beacon of support to growing SMEs across SoutheastAsia.

About VinaCapital Ventures

VinaCapital Ventures is a USD100 million technology holding company that invests in the next generation of Vietnamese and Southeast Asian startups. Its mission is to help develop strong technology companies in Vietnam and assist them in building a regional presence. In supporting entrepreneurs, VinaCapital Ventures offers capital, network and mentorship. Its team combines a diverse set of skills and experience, ranging from entrepreneurship, product marketing, operational management, and technology strategy, to developing client bases, deal making and capital raising. VinaCapital Ventures is part of VinaCapital, one of Vietnam's leading asset management companies with USD1.8 billion in assets under management.

About Validus Capital

Founded in 2015 and backed by Netherlands' development bank FMO, as well as Temasek Holdings' Vertex Ventures, Validus Capital is Singapore's leading peer-to-business lending platform. Validus connects growing SMEs to accredited investors and financial institutions. It acts as a catalyst of sustainable growth for SMEs.

Validus' online marketplace is powered by a proprietary platform which leverages a secure and robust cloud infrastructure as a delivery mechanism. In addition, Validus utilises a robust risk algorithm that leverages on artificial intelligence 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 per cent capital principal 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.

Licensed by the Monetary Authority of Singapore (MAS), Validus is also a member of the Singapore Fintech Association. Please visit www.validus.sg for more details.