May 23, 2022

Validus, Singapore’s SME lending platform, is acquiring Citi Business’s loan portfolio for an undisclosed amount to boost its revenue and customer base, and expand its growing loan portfolio.

Validus co-founder and CEO Nihilesh Goel told gaming-updates that Validus is looking to create synergies with the loan portfolio of CitiBusiness, Citi Singapore’s small banking arm. This is a portfolio of loans to hundreds of small businesses in Singapore, a target market that Validus serves, Goyal said.

Goyal told gaming-updates: “Through this acquisition, we can not only meet the financial needs of these SMEs for growth, but also provide them with business accounts, expense management solutions and payments to manage their business, and we can also provide services.

Goyal also said the deal would be funded by a securitization facility that Validus is negotiating with several global financial institutions. The acquisition will be completed in April 2022.

Goyal said that this is the second acquisition of Validus. received last year transparent card, Business payment and expense management platform in Singapore.

In June 2021 City of Singapore Reported Terminate the city’s business unit serving small and medium-sized business (SME) customers. In January, Citigroup also agreed to sell its Southeast Asian retail operations in Indonesia, Malaysia, Thailand and Vietnam to Singapore’s United Overseas Bank for about $3.7 billion.

Roy Phua, head of mortgage lending and Citi Business at Citibank Singapore, said: “The sale of Citi’s business loan portfolio in Singapore follows our previous announcement to close our small business division following a strategic review.” “Our priority is to ensure a smooth transition of credit to our consumers and Validus, who we believe can continue to serve them and meet their needs.”

Goyal said Validus has hired independent people to manage Citi’s business team while also handling the loan portfolio and clients.

Vikas Nahata, co-founder and executive chairman of Validus, said: “We are confident that Citi will create value for customers that will be transferred to Validus.” “Through our digital platform, they can access additional financial solutions to grow their business with financial services such as business accounts, cards, money transfers, and a smarter and more efficient way to manage their corporate finances. Device”.

Since the last funding in May 2020, Validus has significantly expanded its team with over 25% new hires. In January, the company passed a major milestone of over $1 billion (SG$1.6 billion) in total funds distributed across over 50,000 small business loans in Singapore, Vietnam, Indonesia and Thailand. Goyal said that, on average, 90% of his clients return.

The company will complete another fundraiser, Goyal said, without giving details. Validus is backed by investors such as FMO, Vertex Growth, Vertex Ventures in Southeast Asia and India, SCG from AddVentures, K3 Ventures, Openspace Ventures and VinaCapital Ventures.

Leave a Reply

Your email address will not be published.