Singapore Based peer-to-peer lender Validus Capital has raised US$20 million in its ongoing Series B+ funding round, including the more than US$14 million already in the bank. The round was led by Vertex Growth Fund and the Kuok Group’s Orion Fund, managed by K3 Ventures.
Existing investors FMO (Netherlands’ public-private development bank), Vertex Ventures South-east Asia and India, Openspace Ventures, Thai firm Siam Cement Group’s AddVentures, and Vietnam’s VinaCapital Ventures also participated in the round.
Validus will continue to invest heavily in technology, and solidify its position in Singapore, Indonesia, and Vietnam. The fresh funds will also support the company’s expansion to Thailand in Q4 this year.
Validus launched its Indonesian entity, Batumbu, and Vietnam entity, Validus Vietnam, last May, and November respectively.
Founded in 2015 and headquartered in Singapore, Validus brings together accredited individual and institutional lenders and SMEs. It obtained its CMS license from MAS in December 2017. Since then, Validus has expanded into Indonesia and Vietnam and has successfully topped US$315 million in business funding – a record for P2P lending platforms in Singapore.
With the fresh funding, Validus said that it will continue to invest heavily in technology and innovation, and solidify its position in the three ASEAN countries it’s present in. It will also fund the upcoming new venture in Thailand slated for Q4 2020.
Co-founder and COO Nikhilesh Goel says that during the COVID-19 pandemic, the company has seen more demand for short-term financing, with a 50% year-over-year increase for credit-approved unsecured loans over the past few months.
Despite the impact of the pandemic on small businesses, loan performance has held steady, he added, because Validus focuses on corporate vendor financing for SMEs whose end-buyers are large corporations or government-linked entities.
Validus also plans to provide financing to SMEs that are on the frontlines in the battle against COVID-19, including working capital for SMEs in the healthcare and pharmaceutical industries, and logistics and cleaning services.
“Through working closely with corporate partners and investors on the platform, we also aim to support SMEs who are pivoting their businesses to adapt to services and products that are required in this time,” Goel said.
Kuok Meng Xiong, the managing partner of K3 Ventures, said: “We are highly impressed by the leadership and depth of credit management experience at Validus. The team has demonstrated the unique ability to capture critical data points, combined with comprehensive machine learning capabilities, to identify high-potential SMEs that may have fallen through the cracks of the traditional banking model.”