Validus secures US$50m to support MSMEs in ID

Validus, a Singapore-based digital lending platform for small and medium businesses (SMEs), has secured US$50 million from HSBC under the ASEAN Growth Fund strategy.

The fund is aimed at supporting financial inclusion for micro, small and medium enterprises (MSMEs) in Indonesia and to address their challenges in accessing financial resources. 

The initiative will be done via Validus' Indonesian subsidiary Batumbu. 

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“This long-term partnership with HSBC builds on our ongoing efforts to bridge the financing gap for MSMEs in Indonesia. We will continue to pioneer innovations and drive advancements in the lending space," said Nikhilesh Goel, co-founder and group CEO of Validus.

"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," added Goel. 

By offering more accessible financing options, the fund will be purposed for supporting Indonesian MSMEs in overcoming financial barriers and enhancing their role in driving the country's economic development. It will also address the financing gap in Indonesia.

“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," said Harish Venkatesan, head of corporate and business banking, HSBC Singapore.

"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," added Venkatesan. 

Meanwhile, earlier in June this year, the Indonesian ministry of tourism and creative economy has unveiled the Indonesia Business Startup Matchmaking, also known as IndoBisa 2024 programme, to strengthen the startup ecosystem in Indonesia. 

IndoBisa2024 is a programme that connects local startups with investors, mentors and related stakeholders in the business ecosystem. Its programme also covers fundraising, mentoring programs and networking sessions with investors.

It aims to support the development of startup companies in the tourism and creative economy sectors. 

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