Validus Group, a Singapore-based digital financing platform, has secured loans totalling about $17.6 million from Dutch entrepreneurial development bank FMO and social investor Oikocredit to support underserved micro businesses in Indonesia.
In a recent statement, Validus revealed that FMO is set to provide $15 million in funding which will be disbursed by Validus’ local unit PT Berdayakan Usaha Indonesia (Batumbu) to credit-constrained and underserved SMEs across the archipelago.
“We are delighted to take this partnership with Validus Group to the next level and support the growth of Indonesian SMEs. This collaboration is a testament to our commitment to promoting sustainable economic development and financial inclusion. By empowering Batumbu with the necessary resources, we can help more small businesses achieve their potential, ultimately contributing to the broader economic prosperity of Indonesia,” Juan Jose Dada Ortiz, director of financial institutions at FMO, said in a statement.
The Dutch development bank had proposed the $15-million financing facility to Validus in July 2023. FMO first invested $6.08 million in Validus in 2019 and another $140,000 in 2021 before proposing to invest $650,000 in 2022.
Validus Group also recently secured a 2.4-million-euro financing facility from social investor Oikocredit which will mature in 2027. Similar to the debt facility secured from FMO, this will be disbursed through Batumbu.
The loan marked Validus as a new Oikocredit partner and the latter’s first fintech loan in Southeast Asia, a statement said.
“With Oikocredit’s support, Batumbu will be better positioned to offer tailored financing solutions to underserved SMEs across multiple provinces of Indonesia, where banking presence is often thin, driving financial inclusion and fostering entrepreneurship. Together, we aim to create a lasting impact on the Indonesian economy,” Reza Perazi Armadi, director and deputy CEO of Batumbu, said.
Founded in 2015, Validus uses data analytics and technology to provide efficient, affordable, and accessible financing to small businesses. Validus, through its subsidiaries including Batumbu in Indonesia, has disbursed more than $3.5 billion in loans.
FMO has been actively proposing loans to support Southeast Asian firms. The Dutch entrepreneurial development bank was considering a $15-million loan facility to a Vietnamese shrimp processing and exporting firm Camimex Group; a $5-million investment in Singapore-based peanuts industry major player Agrocrops, a $10-million debt investment, and a $5.3-million equity investment in Indonesia-based microfinance institution Esta Dana Ventura (EDV) at the start of the year, among others.
With British International Investment (BII), FMO also made a joint loan commitment of $50 million to BECIS, an energy-as-a-service provider in Southeast Asia in April.
