The acquisition of Validus Capital Pte Ltd, the Singaporean subsidiary of Validus Investment Holdings Pte Ltd (Validus Group), has been approved by regulators, according to a Monday announcement from GXS Bank.
“With the acquisition, small and medium-sized businesses (SMEs) can rely on GXS Bank to support their diverse business and financing needs across their growth stages,” the company said in a statement.
GXS Business Banking is positioned to assist SMEs at every stage of development, it is noted.
Through the GXS FlexiLoan Biz and the GXS Biz Account, GXS Bank currently provides services to sole proprietorships and other single ownership businesses.
The GXS FlexiLoan Biz is an unsecured line of credit, whereas the GXS Biz Account is an operating account that carries no fees and offers daily interest crediting.
With short-term trade finance and supply chain financing, the bank will now be able to assist larger SMEs who want to maximize their cash flow and access timely financing to seize business opportunities.
Validus Capital, a fully-owned subsidiary of GXS Bank, will power these financing options.
The statement claims that this is the first time a domestic digital bank in Singapore has purchased a local financial technology (fintech) business.
One of the biggest online lending platforms for SMEs in Singapore is Validus Capital.
Since its founding in 2015, Validus Capital has given thousands of SMEs in this region more than $1 billion in working capital and supply chain financing loans.
The all-cash acquisition is scheduled to close on April 15, 2025.
Validus Capital will then turn into a fully-owned subsidiary of GXS Bank.
“There are significant synergies from this acquisition. As a bank, we are leveraging our balance sheet strength, digital ecosystem, and regional network to enhance and extend Validus Capital’s digital lending solutions to more SMEs in the region,” said Muthukrishnan Ramaswami, Group Chief Executive Officer, GXS Bank.
He claims that GXS Bank can assist SMEs in quickly unlocking cash flows thanks to Validus Capital’s suite of financing options.
“Instead of waiting for payment for work done or goods supplied, SMEs will be able to take advantage of our supply chain finance and working capital loans, powered by Validus Capital,
“The sooner they receive capital, the faster they can invest in growth opportunities,” he added.
