The Singapore-based digital supply chain financing platform Validus has announced that Khazanah Nasional, Malaysia’s sovereign wealth fund, is leading a $30 million investment in its Series D funding round.
After selling its Singapore business to Grab’s digital bank, GXS, in April of this year, Validus said in a statement on Thursday that the investment will support the company’s strategic growth in its core markets, Indonesia and Thailand.
As it continues to solidify its market-leading positions in Indonesia and Thailand, where there are still enormous untapped addressable markets, Validus has projected to double its loan books over the next three years. The additional funds will be used to expand Validus’s business operations.
“We are thrilled to partner with Khazanah. Their disciplined, long-term investment approach and deep expertise in the financial services sector make them an ideal partner for us as we deepen our capabilities to provide impactful financing solutions to small and medium-sized enterprises (SMEs) in the region,
“This partnership will significantly advance our mission to drive financial inclusion and economic prosperity across Southeast Asia,” said Nikhilesh Goel, Co-Founder and Group Chief Executive Officer of Validus.
Validus, an alternative lending platform for SMEs in ASEAN, was established in 2015.
An anchor-led supply chain financing model, proprietary data-driven credit analytics, a marketplace framework for institutional participation, and advanced private credit structuring solutions are all part of the company’s full stack vertically integrated lending ecosystem.
To date, it has given SMEs loans totaling more than $5 billion.
In an environment devoid of reputable and well-established fintech incumbents, the platform is utilized by regional and global banks as well as significant corporate anchor partners in Indonesia and Thailand, markets that together offer a massive $46 billion supply chain financing opportunity.
A strong ecosystem-driven supply chain financing model, proprietary credit underwriting algorithms supported by numerous alternative data sources, and distinctive end-use control mechanisms serve as the foundation for the company’s unique business model.
For the past three years in a row, its business in Indonesia has been profitable.
Validus’s sole financial advisor in this transaction was Avendus Capital.
