February 10, 2024 | 07:30 GMT+7

Validus Vietnam secures fresh funding to enhance SME financing

Diep Linh -

New investment expected to support company in providing financial solutions for underserved SMEs in Vietnam.

Validus Vietnam, a financing platform catering to small and medium-sized enterprises (SMEs), has received investment from Japan’s Reazon Holdings. The specific amount of investment was not disclosed.

The investment in the VGrowth Development Co. Ltd. (Validus Vietnam), the Vietnamese arm of Singapore’s Validus Investment Holdings Pte. Ltd. (Validus Group), which is the leading all-in-one financing platform for SMEs in the Southeast Asia region, reflects a strategic initiative to aid SMEs in the area, which remain underserved as they face significant hurdles in obtaining financing solutions from traditional financial institutions due to strict collateral requirements and complex screening processes, etc. Leveraging data analytics, AI technology, and strategic supply-chain partnerships to provide a one-stop financial solution for underserved SMEs, the Validus Group aims to promote financial inclusion and prosperity for these growing businesses in the region.

According to its official announcement, Reazon Holdings has decided to invest in Validus Vietnam based on its high evaluation of the market potential for SME finance in Vietnam and Validus Vietnam’s future potential, backed by its operations and lending track records in other Southeast Asian countries. Through this investment, Reazon Holdings will actively support Validus Vietnam’s business growth, including support for financing procurement through its group network.

For Validus Vietnam, this investment marks a positive development, paving the way for a promising journey for the company, facilitating greater access for SMEs to reliable, swift, and secure business funding.

Founded in 2015, Validus, a prominent fintech firm in Southeast Asia and backed by the Vertex Fund under the Singaporean Government, has flourished as the premier financial growth support platform for SMEs in the region. Headquartered in Singapore, the company is expanding across Indonesia, Singapore, Thailand, and Vietnam. Its strategic investors in Vietnam include the TTC Group, Do Venture Fund, and VinaCapital Venture. Validus has disbursed nearly SGD4 billion ($2.97 billion) in over 80,000 loans to small businesses across these four markets.

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