GXS Bank acquires Validus Capital to boost SME lending in Singapore

By Gloria Methri

GXS Bank has received regulatory approval to acquire Validus Capital, the Singapore subsidiary of Validus Group. This is the first such acquisition of a local FinTech company by a homegrown digital bank in Singapore.

Validus Capital is one of Singapore’s largest digital lending platforms for small and medium-sized enterprises (SMEs). Established in 2015, it has disbursed more than $1 billion in supply chain financing and working capital loans to thousands of SMEs.

The acquisition is an all-cash deal that will be completed on 15 April 2025. Following this, Validus Capital will become a wholly owned subsidiary of GXS Bank.

Muthukrishnan Ramaswami, Group Chief Executive Officer, GXS Bank, said, “As a bank, we are leveraging our balance sheet strength, digital ecosystem, and regional network to enhance and extend Validus Capital’s digital lending solutions to more SMEs in the region. Validus Capital’s suite of financing solutions enables GXS Bank to help SMEs unlock cash flows in a timely manner. Instead of waiting for payment for work done or goods supplied, SMEs will be able to take advantage of our supply chain finance and working capital loans powered by Validus Capital. The sooner they receive capital, the faster they can invest in growth opportunities.”

Nikhilesh Goel, Co-Founder and Group CEO of Validus Group, said, “We have pioneered the anchor-led supply chain model for FinTech lending across ASEAN, and in Singapore, we have built a comprehensive SME business leveraging our capabilities in technology, data science and AI. We are pleased to partner with GXS Bank, which shares our passion for financial inclusion across the underserved SME segment, and their acquisition of our Singapore business is a testament to the strong potential of the Validus model.”

Goel added, “Validus Group will continue to be headquartered in Singapore and will redouble our commitment to our core markets in Indonesia (where we operate under the brand Batumbu), and Thailand where the untapped addressable markets are much larger and deeper. Batumbu has been highly profitable for the last three years. With this reorganisation, Validus is now profitable at a Group level – one of the few FinTechs in the region to have achieved this milestone.”