01Fintech invests $20m in Validus to fuel SME Financing in the SEA

By Gloria Mathias

01Fintech, a growth-stage private equity firm in Southeast Asia, has announced a $20 million investment in Validus, an SME supply-chain financing platform with operations in Indonesia, Singapore, Thailand, and Vietnam.

Validus drives financial inclusion and prosperity for small businesses by leveraging proprietary data and AI to drive growth financing to the underserved SME sector, resulting in faster and effortless one-stop financial solutions that increase SMEs’ productivity and cost savings.

The investment will enable Validus to accelerate its expansion plans in fast-growing markets like Indonesia, enhance its technological innovation, and solidify its position in supply chain financing.

01Fintech recognises the potential of Validus’ approach to SME financing, which has led to its rapid growth and partnerships with financial institutions such as Citibank and other major global banks.

Validus’ focus on addressing the unmet financing needs of SMEs aligns with 01Fintech’s mission of supporting financial technologies that enhance inclusion for the underbanked and underserved communities.

“Validus has a unique strategic ecosystem partnership model with brand owners, conglomerates, and public companies across Southeast Asia, which enables them to better serve upstream SME suppliers and downstream buyers. These partners provide critical proprietary supply chain data to Validus, which will continuously improve its risk underwriting models and algorithms, a unique strength that other similar companies do not have. By leveraging their existing approach to supply chain financing, we believe Validus can further tap into the merchant bases of other platforms and provide supply chain financing in a seamless, automated way,” said Kenny Man, Managing Partner of 01Fintech.

“We are excited about the opportunities this partnership will unlock for us. With the support of 01Fintech, we aim to cement our leadership as the number one digital SME financing company in the region. We will be able to tap into their expertise and vast network in the region. The in-depth due diligence 01Fintech has done has shown their deep domain expertise and willingness to identify areas of growth to bring the company to the next level,” said Nikhilesh Goel, Co-founder and Group CEO, Validus.