Singapore – Validus, a digital SME lending platform, has announced the establishment of a debt facility of up to US$50 million from HSBC with the aim of financially supporting micro, small and medium enterprises (MSMEs) in Indonesia.
Digital SME financing platform Batumbu, Validus’ Indonesian subsidiary, will be deploying the debt facility.
According to Indonesia’s Ministry for Economic Affairs, MSMEs contribute 61% of the country’s gross domestic product, encompassing 97% of the country’s total workforce. However, MSMEs in the country struggle to secure financial resources due to banks’ stringent requirements, as reported by the World Bank.
As an additional and accessible financing option, the debt facility aims to help MSMEs overcome financial challenges while boosting their contribution to Indonesia’s economic development.
“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. 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,” Nikhilesh Goel, co-founder and group CEO of Validus, said.
Harish Venkatesan, head of corporate and business banking at HSBC Singapore, said “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. 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.”
While based in Singapore, Validus has expanded its presence in Indonesia, Vietnam, and Thailand.
