by Fintech Information Indonesia
July 2, 2024
Validus Group, a digital SME financing platform based mostly in Singapore, has secured a complete of US$17.57 million in debt financing from each Oikocredit and FMO to help small and medium-sized enterprises (SMEs) in Indonesia.
Oikocredit has introduced a EUR 2.4 million (US$2.57 million) mortgage which matures in 2027 to Validus, marking its first fintech mortgage in Southeast Asia.
This funding will allow Validus’ Indonesian subsidiary, Batumbu, to develop its attain and help extra native companies.
The collaboration between Oikocredit and Validus goals to handle the numerous SME funding hole in Indonesia, the place many small companies battle to entry funds from business banks on account of information and danger points.
Reza Perazi Armadi
Reza Perazi Armadi, Director and Deputy CEO of Batumbu, stated,
“The partnership with Oikocredit marks a major milestone in our efforts to bridge the SME financing hole in Indonesia.
With Oikocredit’s help, Batumbu shall be higher positioned to supply tailor-made financing options to underserved SMEs throughout a number of provinces of Indonesia, the place banking presence is usually skinny, driving monetary inclusion and fostering entrepreneurship. Collectively, we goal to create an enduring impression on the Indonesian economic system.”
In a separate improvement, FMO, the Dutch entrepreneurial improvement financial institution, has offered a US$15 million facility to Validus.
FMO has been an investor in Validus since 2019, and this new debt financing goals to help the underserved section of MSMEs in Indonesia.
By way of Batumbu, this collaboration seeks to bridge the financing hole confronted by SMEs, driving financial progress and sustainable improvement within the area.
Glant Saputrahadi Tan
“Partnering with FMO marks a major step ahead in our mission to handle the SME financing hole in Indonesia.
With FMO’s help, Batumbu can develop its attain and supply extra tailor-made financing options to SMEs, driving innovation and entrepreneurship. Collectively, we’re dedicated to creating an enduring optimistic impression on the Indonesian economic system.”
stated Glant Saputrahadi Tan, Director and CEO, Batumbu.
Batumbu has been worthwhile for over two years, sustaining EBITDA margins above 50%. Its mother or father firm Validus has disbursed greater than US$ 3.5 billion in loans to small companies throughout Southeast Asia since its inception in 2015.
Featured picture credit score: Edited from Freepik
