Batumbu, the Indonesian arm of Singapore-based SME financing platform Validus, has received regulatory approval from the Financial Services Authority (OJK) to operate as a licensed digital lending platform.
After gaining the licence, Jenny Wiriyanto, CEO of Batumbu, said the company will build strategic partnerships to expand its reach. “We’ll also be ramping up efforts to improve financing access and financial literacy within business ecosystems across Indonesia. The Batumbu team is dedicated to accelerating financial inclusion for MSMEs, to drive a more advanced and resilient Indonesia,” Wiriyanto said.
Since starting operations in 2019, Batumbu has disbursed over S$207 million ($153.89 million) in financing.
As on December 2020, Indonesia has 149 registered fintech firms, but only 37 have obtained a digital lending licence from OJK. This includes Danamas, Investree, UangTeman, Akseleran, and Amartha, according to the regulator’s statistics.
OJK is currently preparing a draft regulation for fintech lending to strengthen the paid-up capital of firms and protect consumers.
Batumbu’s parent firm Validus has received regulatory approval in three markets across Southeast Asia to date — Singapore, Thailand, and Indonesia.
Since launching in 2015, Validus has financed over S$775 million ($576.18 million) in SME financing across Singapore, Vietnam, Indonesia, and has just begun operations in Thailand.
Validus is backed by investors including Vertex Ventures Southeast Asia and India, Vertex Growth Fund, Triputra Group, and FMO, with a total funding of around $37.1 million to date.
In May 2020, amid the pandemic, Validus raised $20 million in an extended Series B funding round co-led by Vertex Growth Fund and Kuok Group’s Orion Fund managed by K3 Venture Partners. This round was joined by Vertex Ventures Southeast Asia and India, Openspace Ventures, Thailand’s AddVentures (Siam Cement Group), and Vietnam’s VinaCapital Ventures.
Fintechs including Validus had faced significant pressure to stay capitalised amid the COVID-19 disruption.