Singapore Fintech Firm Heading into Indonesia

Following a successful Series B funding round, SME lending platform Validus Capital is launching in Indonesia. SME lending platform Validus Capital has launched in Indonesia, its first Southeast Asian market outside its home country of Singapore, the firm announced in a media release on Thursday.

Launched in partnership with Indonesia’s Triputra Group under the name Batumbu, the financing platform connects domestic SMEs from sectors as diverse as food and beverage (F&B), services, engineering, to construction industries with accredited, institutional and high net worth investors.

Leading the local management team is Sonny Christian Joseph, who has over 23 years in SME banking in Indonesia and was previously head of SME banking at Indonesian business bank BTPN.

P2P lending platforms have gained popularity and have grown rapidly in Indonesia. In 2018, P2P lending platforms disbursed a total of US$1.4 billion (S$1.9 billion) in loans, representing a 681.25 per cent year-on-year growth, according to data from Indonesian financial services authority Otoritas Jasa Keuangan.

«Our expansion into Indonesia serves as a significant milestone for us. Sharing our insights and applying key learnings from Singapore allows us to take a proven and sustainable business model and apply this to a larger market – a market where I have personally spent a few years helping SMEs to grow,» Ajit Raikar, Validus CEO and co-founder, said.

Unlike traditional financing options and P2P lenders, Butumbu uses proprietary technology and credit scoring systems adapted and tailored to cater to the needs of SMEs in Indonesia. The firm said that  it will develop strategic partnerships with large corporations to ensure an extremely robust and scalable financing ecosystem.

In February 2019 Validus recently raised US$15.2 million (S$20.5 million) in an oversubscribed Series B funding round led by Dutch public-private development bank FMO.

Validus was founded in 2015 and is backed by the likes of Netherlands development bank FMO and Temasek Holdings’ Vertex Ventures. According to the company, it is Singapore’s largest peer-to-business lending platform, facilitating over US$147 million (S$200 million) in business financing to local SMEs in less than 18 months.