Validus Secures $50 Million in Debt Financing from HSBC to Support MSMEs in Indonesia
Singapore-based digital lending platform, Validus, has secured $50 million in debt financing from HSBC under the ASEAN Growth Fund strategy. This funding will be used to support the financial inclusion of micro, small, and medium enterprises (MSMEs) in Indonesia, addressing the challenges they face in accessing financial resources.
With 64.2 million MSMEs contributing 61% of Indonesia’s GDP, the potential for growth is immense. However, only about 17.5 million MSME players are tapping into the online ecosystem and e-commerce due to challenges in accessing financing. Validus, co-founded by Vikas Nahata and Nihkilesh Goel in 2015, aims to bridge this gap with its supply chain-focused lending model.
The company has expanded to include operations in Indonesia (Batumbu), Thailand (Siam Validus), and Vietnam (Validus Vietnam), offering stable and accessible working capital to small businesses in the region. Validus partners with major international institutions and local banks to provide financing to MSMEs, making it the largest digital SME financing provider across ASEAN.
In the past three years, Validus has experienced significant growth in revenue and net profits, with its Indonesia business being net profit positive since 2022. The company aims to be cash flow positive by early next year and has raised approximately $75 million in total equity funding.
With over 100 unique partnerships throughout Southeast Asia, Validus is making a major impact in the region by providing much-needed financial support to MSMEs. This investment from HSBC further solidifies Validus' position as a key player in the digital lending space, driving economic growth and job creation in the ASEAN region.