For SMEs in Southeast Asia, financing is still a problem. Due to challenging financing requirements, stringent collateral requirements, and intricate screening procedures, a large number of them continue to be underserved.
The goal of Singapore-based fintech company Validus is to address the problem. To finance SMEs in the area, it makes use of supply-chain alliances, artificial intelligence, and data analytics.
The company, which entered Vietnam in 2019, has obtained fresh funding from Reazon Holdings, a Japanese company, to support its business expansion in that country. The sum was not disclosed.
Reazon Holdings chose to invest in Validus Vietnam, according to the Vertex Ventures-backed company, because of the country’s “high market potential”.
Reazon Holdings stated that it will use this investment to actively support Validus Vietnam’s operations, including by using its network to help the fintech company find funding.
A former Ant Group executive-led private equity firm 01Fintech invested US $20 million in Validus in December 2023. Since its founding in 2015, Validus has raised about US $90 million in funding in total.
In 2022, the company’s revenue was US$10.1 million, and its loss before income tax was US $13.4 million. Validus operates in Indonesia and Thailand in addition to Vietnam and Singapore.
