01Fintech, a private equity firm specializing in financial technology in Southeast Asia, has announced a $20M investment in Validus, a leading small-and-medium-enterprises (SME) supply-chain financing platform.
- Market Presence: Validus operates in Indonesia, Singapore, Thailand and Vietnam, providing financial solutions for SMEs using proprietary data and AI.
- Funding Enablement: The investment will fuel Validus’ expansion plans in rapidly growing markets such as Indonesia, enhance its tech innovation, and strengthen its position as a market leader in supply chain financing. 01Fintech acknowledges the potential of Validus’ innovative approach to SME financing, which has facilitated rapid growth and collaborations with top financial institutions like Citibank.
- Growth and Revenue: Since 2015, Validus has disbursed over $3B in loans to SMEs in Southeast Asia, achieving quality growth against a challenging macroeconomic backdrop. The company has seen a 50% revenue growth and a 40% decrease in losses this year. Continued participation from esteemed investors signifies strong confidence in Validus’ business model.
The SME financing gap in Southeast Asia represents a $490B opportunity for digital lenders with robust credit assessment abilities. Micro, small, and medium-sized enterprises (MSMEs) form 97% of all regional enterprises, employ 69% of the labor force, and contribute to 42% of the GDP. However, most of these SMEs lack sufficient credit and liquidity for their daily working capital needs. This is where Validus’ and 01Fintech’s mission of supporting financial technologies for under-banked and under-served communities comes into play.
01Fintech’s Managing Partner, Kenny Man, expressed excitement about partnering with Validus, praising their innovative data-driven approach, strong credit assessment capabilities, and unique strategic ecosystem partnership model. He strongly believes in the team’s potential and passion to address the immense SME financing gap in Southeast Asia.
The investment by 01Fintech is seen as a significant milestone by Validus. With the support of 01Fintech, the company aims to strengthen its leadership position as the top digital SME financing company in the region.
