Singapore: Vertex Ventures invests $3m in Validus Capital’s Series A round

Graphic from Validus Capital homepage.

Vertex Ventures has invested $3 million (S$4.1 million) in Validus Capital, an online fintech marketplace for small and medium enterprises (SMEs) based in Singapore. Validus Capital said will use the Series A cash infusion to fund technology initiatives and enter new geographies across the region.

The round saw Validus raise another $600,000 (S$829,251) from angel investors in addition to the investment from Vertex Ventures.

Validus helps SMEs to secure short and medium term financing from accredited investors, using proprietary algorithmic assessment. Earlier this year, it raised a S$1 million pre-Series A round from angel investors, most of whom are senior professionals and corporate leaders across financial services, FMCG, educational, and real estate firms.

“The Vertex backing gives us the added impetus to forge ahead and reach out to a large SME base in Singapore and provide them with ease of financing”, said Ajit Raikar, CEO, Validus Capital.

According to a media release, Validus Capital has been growing at 100 per cent in terms of disbursements. In less than two years, it has financed over 100 facilities for SMEs across different sectors in Singapore and disbursed over $22 million.

Additionally, Validus has developed its own proprietary algorithm using a rigorous triple layer of due diligence and recently added a fraud detection algorithm to their underwriting algorithm and claims to be the only Singapore-based online lending platform that can insure their accredited investors for up to 90 per cent capital protection of loans given to SMEs.

As part of its expansion, the firm is forming partnerships with several corporates to provide bespoke solutions to their SME vendors and customers across different sectors.

These financing solutions, targeting the supply chain/vendor segment, enables them to free up cash flow.

Data released by Monetary Authority of Singapore (MAS) indicates the business loan market in the city-state had a capitalisation of $357 billion in 2015.

Over the same period, global peer to peer lending market was valued at $26.16 billion, according to Transparency Market Research.

Speaking on the investment, Joo Hock Chua, Vertex Ventures SEA/India Managing Partner, comments: “ Validus has one of the strongest teams in the region displaying diversity and depth of experience in the financial industry. Their SME risk assessment model has been endorsed underwritten by a professional insurance company.”

Also Read:

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Vertex Ventures set to beat $150m target for SE Asia & India focused fund: Kee Lock

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.