Validus Capital , a Singapore based financing platform, has launched Validus Vietnam. This marks Validus’ third Southeast Asian market following from Singapore in 2015, and Indonesia, where it launched its Indonesian arm Batumbu in May 2019.  

Validus Vietnam looks to plug the unmet US$21 billion SME financing gap in the country. To meet the financing needs of SMEs in burgeoning industries, including manufacturing, real estate, construction, healthcare, consumer services, retail and wholesale trade, Validus Vietnam will partner with corporates to provide SME growth financing to their vendors and subcontractors. Pilot programmes with partners that are in the pipeline include Medicare Vietnam, the largest pharmacy, health, beauty and personal care retail group; and Unicons, a member of Coteccons Group, one of the leading private construction enterprises in Vietnam.

Validus Vietnam will operate using the same proven proprietary technology and credit scoring systems currently used in Singapore and Indonesia to provide Vietnam’s SMEs access to fast, reliable and affordable sources of growth financing. Built on the same validated processes, technology and robust credit algorithms, Validus Vietnam’s platform will be further adapted and tailored to cater to the unique needs of SMEs in the country.

Led by Mr. Nikhilesh Goel, Co-Founder of Validus with over 14 years’ experience in debt and equity financing, portfolio management and value creation for SMEs both in Vietnam and across Southeast Asia, Validus Vietnam comprises a strong, local team, with significant experience in financial services, retail and commercial banking in the country.

A recent study commissioned by Validus shows the impact of its financing activities in Singapore on SMEs and the economy in 2018: Validus-supported SMEs increased their annual revenue by 17 per cent on average, contributed USD$300 million to GDP in Singapore, and supported more than 10,000 jobs in the country.

Validus hopes to replicate this same positive social impact across Southeast Asia, including in Vietnam, by addressing the domestic unmet financing gap. The SME financing gap in Southeast Asia is estimated to be US$175 billion per consulting firm McKinsey in 2016. In Vietnam, SMEs make up 97 per cent of the total enterprises, but they only account for 22 per cent of total bank lending.

VinaCapital, Southeast Asia’s leading investment management and real estate development firms based in Vietnam, a shareholder of Validus, is confident that Validus is well-positioned to help accelerate financial inclusion among the unbanked and underserved SMEs in Vietnam.

Mr. Trung Hoang, Deputy Managing Director at VinaCapital, said,

“Validus’ data-driven platform leverages artificial intelligence and machine-learning to facilitate accessible and affordable business financing for SMEs. Their impressive track record as a fast-growing fintech company and the impact that they’ve delivered to date is testament to their commitment and ability to successfully drive inclusive growth for SMEs across the region.”

In July 2019, Validus announced its plans as one of the first Singapore fintechs to apply for a digital banking licence in Singapore, to deliver an inclusive, 360-degree solution for SMEs. Earlier in February 2019, Validus also raised S$20.5 million (US$15.2 million) in a Series B funding round led by Dutch public-private development bank FMO and Vertex Ventures.

Featured image credit: From left, Nikhilesh Goel, Co-founder of Validus Capital, Thuy Ha, Chief Business Officer of Validus Vietnam, Amrit Kapoor, Chief Operating Officer of Validus Vietnam at the Validus’ Vietnam launch event.