Singapore-based digital SME lending platform Validus has secured a debt funding of up to US$50 million debt funding from HSBC, provided under the bank’s ASEAN Growth Fund strategy.

The funds will be used to expand financial access for micro, small, and medium enterprises (MSMEs) in Indonesia through Validus’ Indonesian subsidiary, Batumbu.

This funding aims to support Indonesian MSMEs by providing them with more accessible financing options, addressing financial barriers, and helping to drive economic growth.

Batumbu has reported growing profits over the past two years and consistently achieved EBITDA margins exceeding 50%.

Since 2021, Validus has disbursed S$5.17 billion and operates across several countries, including Indonesia, Vietnam, and Thailand,

Validus is backed by investors such as Vertex Ventures Southeast Asia and India, Vertex Growth, and FMO among others.

Nikhilesh Goel, Co-founder and Group CEO of Validus said,

“By leveraging Batumbu’s unique position as the largest and only profitable digital SME financing platform in the country, we are committed to unlocking new opportunities for businesses, driving economic growth, and enhancing financial inclusion.

We are honoured to work with HSBC on this pivotal initiative, which will enable Validus to make a larger impact on the Indonesian economy.”.

Harish Venkatesan, Head of Corporate and Business Banking, HSBC Singapore said,

“As one of the leading MSME digital financing players in the ASEAN region, we are pleased to support Validus in playing an instrumental role in promoting financial inclusion to underserved small businesses in this region.

MSMEs play a key role contributing to the long-term economic success in the ASEAN region and beyond. We look forward to supporting Validus in their mission to drive regional growth through the HSBC ASEAN growth fund.”

The article first appeared on Fintech News Singapore