Validus’ Thai Entity Secures Crowdfunding License From Local Regulator

Validus’ Thai Entity Secures Crowdfunding License From Local Regulator

by February 5, 2021

SME crowdfunding platform Siam Validus has been granted a debenture crowdfunding license by the Securities and Exchange Commission of Thailand (SEC).

Siam Validus is a joint venture between Singaporean SME financing platform Validus and SCG Distribution, a Thailand company focused on the distribution and retail business.

The license will allow Siam Validus to support SMEs using financing solutions via debt crowdfunding to drive capital flow and investment.

Siam Validus said that the licensing was followed by a rigorous due diligence process by SEC, and reflects the regulator’s commitment to improve funding access for SMEs.



SMEs play a pivotal role in Thailand’s economy, accounting for over 95 percent of businesses and supporting more than 80 percent of the country’s employment. However, the SME financing gap stands at 1.289 trillion THB, or 10 percent of its gross domestic product (GDP).

Since its launch in 2015, Validus has reportedly facilitated over half a billion (S$700 million) in SME financing across Singapore, Vietnam and Indonesia.

The company is backed by AddVentures by SCG, FMO, Vertex Ventures Southeast Asia and India, and Vertex Growth Fund, with a total funding of around S$50 million to date.

Validus’ Co-founder and Executive Director Mr. Vikas Nahata said,

Validus’ Co-founder and Executive Director Mr. Vikas Nahata

Vikas Nahata

“The license marks a significant milestone and paves the way for us to help drive the future of SME financing in Thailand.

 

We thank the SEC team for facilitating the process so we are able to bring best practices and a strong governance framework that’s already in place from our regional operations to Thailand.”

Wareemon Niyomthai, CEO of Siam Validus

Wareemon Niyomthai

Wareemon Niyomthai, CEO of Siam Validus, shared that many SMEs in Thailand are often unable to access financing to meet cash flow needs, and are unable to shorten their cash flow cycles to capitalise on opportunities.

“Improving the accessibility of SME financing remains critical in order to drive their growth as well as that of our economy.

 

We are working with our Corporate partner closely, to support their vendors and dealers, and with Siam Validus’ unique ability to effectively leverage technology and data we are confident we will meet the financing needs of underserved SMEs.”

 

Featured image: Wareemon Niyomthai, CEO of Siam Validus

Print Friendly, PDF & Email