Singapore-based digital bank GXS Bank has announced the acquisition of Validus Capital, the Singaporean subsidiary of Validus Investment Holdings (Validus Group), following regulatory approval.
The all-cash transaction saw Validus Capital become a wholly owned subsidiary of GXS Bank.
The acquisition positions GXS Business Banking to cater to small and medium-sized enterprises (SMEs) across all stages of their development. The digital bank already provides services to single-ownership businesses through the GXS Biz Account, an operating account with daily interest and no fees, and the GXS FlexiLoan Biz, an unsecured line of credit.
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The integration of Validus Capital, anticipated to be completed by the end of the year, will allow the bank to serve larger SMEs requiring solutions to optimise their cash flow and access timely financing via short-term trade finance and supply chain financing.
All existing loans disbursed by Validus Capital will continue to be serviced without disruption.
Muthukrishnan Ramaswami, Group CEO of GXS Bank, stated: “There are significant synergies from this acquisition. As a bank, we are leveraging our balance sheet strength, digital ecosystem, and regional network to enhance and extend Validus Capital’s digital lending solutions to more SMEs in the region.”
He further elaborated that Validus Capital’s suite of financing solutions will enable GXS Bank to assist SMEs in unlocking cash flows promptly. “Instead of waiting for payment for work done or goods supplied, SMEs will be able to take advantage of our supply chain finance and working capital loans powered by Validus Capital. The sooner they receive capital, the faster they can invest in growth opportunities,” he added.
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Established in 2015, Validus Capital is one of Singapore’s leading digital lending platforms catering to SMEs. To date, it claims to have disbursed over US$1 billion in supply chain financing and working capital loans to thousands of SMEs in the region.
While the Singaporean business is now part of GXS Bank, Validus Group will maintain its headquarters in Singapore. It will intensify its focus on its core markets in Indonesia (operating under the brand Batumbu) and Thailand. Notably, Validus is now profitable at the group level, a significant achievement for a fintech in the region, with Batumbu having been profitable for the past three years.
Last September, Validus partnered with global banking giant HSBC to raise up to US$50 million in debt facility. The capital is being deployed through Validus’s Indonesian subsidiary, Batumbu, to support local MSMEs and address the country’s financing gap.
GXS Bank, holding a banking licence from the Monetary Authority of Singapore, is owned by a consortium comprising Grab Holdings and Singtel. It operates as part of a regional network of digital banks, working closely with GXBank in Malaysia and Superbank in Indonesia. Validus Group is recognised as a leading SME lending marketplace in Southeast Asia, having financed US$5 billion to SMEs across ASEAN.
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