Founded in 2015, Validus Capital is
Singapore's largest SME financing platform, and has facilitated over S$300
million in business financing to SMEs in Singapore to date. Backed by AAA-rated
Dutch Development Bank FMO and Vertex Ventures, Validus holds a Capital Markets
Services Licence by the Monetary Authority of Singapore (MAS), and its
Indonesian arm Batumbu has received OJK registration in April 2019. As a
catalyst of sustainable growth for SMEs, Validus connects accredited investors
to SMEs through its peer-to-business lending platform, that is powered by
proprietary technology leveraging a secure and robust cloud infrastructure as a
delivery mechanism. For more information, please visit
New Economic Impact Study shows that Singapore SMEs financed by SME financing platform Validus Capital contributed over S$400 million in GDP in 2018
- Validus Capital (Validus) is filling a critical financing gap for SMEs across industries to fuel SME growth
- GDP contribution from Validus
financed SMEs grew by 18 per cent as compared to
8 per cent from businesses overall - Validus lending has supported over 10,000 jobs in Singapore and SMEs who obtained financing from Validus experienced strong employment growth of 12 per cent
SINGAPORE - Media OutReach - 7 November 2019 - Singapore's top SME financing platform Validus
Capital (Validus)
today announced that small and medium-sized enterprises (SMEs) that received financing through their platform has enabled them to grow their
business. It was found that these SMEs
contributed S$
Vikas Nahata, Executive Chairman & Co-founder of Validus, sharing the findings of Validus Economic Impact Study
The study was conducted by Steward Redqueen, a leading consultancy firm focused on impact management and sustainable entrepreneurship.
SMEs are the backbone of Singapore's economy and workforce. In 2018, SMEs contributed 48 per cent to Singapore's GDP and employ 72 per cent of the country's workforce[1]. However, many of them continue to face challenges in gaining access to financing required to grow their business. Many do not have a solid track record of having credit and collateral, and this prevents them from securing a bank loan to grow their business. SMEs being light in fixed assets means that banks will often take a longer period to approve their request.
Steward Redqueen's study demonstrates how
Validus' financing positively impact both the SMEs and wider economy. SMEs that
obtained financing from the platform experienced
SMEs are seeking financing solutions to drive sales, expand their local operations and internationalise their business. Validus is filling a critical financing gap for SMEs across different industries by leveraging the use of Validus' proprietary technology to provide efficient and flexible financing solutions that are customised to the needs of the respective SME borrower.
Nahata added, "Many businesses continue to
hold the belief that having debt on their balance sheet is detrimental. Our
study reinforces that debt can be a growth-enabler when prudent capital
management is exercised. In order for us to continue serving the SME community,
we are partnering with banks and corporates
"To estimate the impact results, we trace how financial flows associated with Validus' financing circulate in the Singaporean economy. These flows are traced using the input-output (IO) methodology; which is to a great extent developed by the Nobel Prize winning economist Wassily Leontief and is commonly used by economists to quantify indirect impacts. Notwithstanding its limitations, this approach provides robust estimations and is the 'go-to' approach for many development finance institutions around the globe," said Tias van Moorsel, Managing Director of Steward Redqueen Singapore.
Singapore's economy grew by 0.1 per cent year-on-year (y-o-y) in the third quarter of 2019, narrowly avoiding a technical recession[2]. On an annual basis, the Ministry of Trade and Industry (MTI) revised its growth estimates to be between 0 and 1 per cent in 2019. Furthermore, SMEs are expecting their turnovers to be lower in the next two quarters owing to global macroeconomic conditions.
Earlier in February 2019, Validus raised S$20.5 million in an oversubscribed Series B funding round led by Dutch public-private development bank FMO and invests in private sector growth in emerging markets. In July, Validus announced its plans to be among the first Singapore fintechs to apply for a digital bank licence in Singapore, with a vision to create an inclusive, 360-degree solution for SMEs in Southeast Asia.
Validus also officially launched its
Vietnam entity, Validus Vietnam,
[1] Singapore Department of Statistics, 2018
[2] A technical recession is defined as two consecutive quarters of negative quarter-on-quarter growth.
Validus Capital
Business
07 Nov 2019
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