FMO Joins Forces with Validus Group through US$15M Facility to Boost Financing for Indonesian SMEs

Singapore/Jakarta, Indonesia July 2, 2024 – FMO, the Dutch entrepreneurial development bank, and Validus Group, a leading digital SME financing platform headquartered in Singapore, are pleased to announce the next step in their strategic partnership. FMO, investor in Validus since 2019, now provides debt financing to Validus with the aim to support the underserved segment of micro, small and medium-sized enterprises (MSMEs) in Indonesia. Through Validus’ Indonesian subsidiary, Batumbu, this collaboration aims to bridge the significant financing gap faced by SMEs, driving economic growth and sustainable development in the region.Batumbu (Validus Indonesia) is the largest digital SME financing platform in Indonesia, has been net profit positive for over 2 years, while consistently generating EBITDA margins of over +50%.

Through this transaction, FMO will provide a starting amount of US$15M in funding to Validus, and through Validus’ Indonesia business, Batumbu, will enhance Validus Group’s capacity to deliver accessible and affordable financing solutions to local businesses and entrepreneurs. This initiative reflects both organizations’ commitment to fostering financial inclusion and supporting the entrepreneurial ecosystem in Indonesia.

“We are delighted to take this partnership with Validus Group to the next level and support the growth of Indonesian SMEs. This collaboration is a testament to our commitment to promoting sustainable economic development and financial inclusion. By empowering Batumbu with the necessary resources, we can help more small businesses achieve their potential, ultimately contributing to the broader economic prosperity of Indonesia.” 

–Juan Jose Dada Ortiz, Director of Financial Institutions at FMO

“Partnering with FMO marks a significant step forward in our mission to address the SME financing gap in Indonesia. With FMO’s support, Batumbu can expand its reach and offer more tailored financing solutions to SMEs, driving innovation and entrepreneurship. Together, we are committed to creating a lasting positive impact on the Indonesian economy.” 

– Glant Saputrahadi Tan,Director and CEO, PT Berdayakan Usaha Indonesia (Batumbu – Validus Indonesia)

About FMO  

FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector leads to economic and social development and has a 50+ year proventrack-record in empoweringentrepreneurstomake local economies more inclusive, productive, resilient and sustainable. FMO focusesonthreesectorsthathavehighdevelopme.   ntimpact: Agribusiness, Food&Water, Energy, and FinancialInstitutions. With a total committedportfolioof EUR ~13 billionspanningover 85 countries, FMO isoneofthelarger bilateral private sector developmentbanksglobally. For more information: pleasevisit www.fmo.nl 

About Validus

Validus is the leading all-in-one SME financing platform in Southeast Asia today. Validus drives financialinclusion and prosperity for small businesses by offering financing to theunder-served SME sectoracross four Southeast Asian markets. Established in 2015, Validus leverages advanced data analytics and technology to provide efficient, affordable, and accessible financing across the supply chain, that ultimately results in faster and effortless one-stop financial solutions to increase its customers’ productivity and cost-savings. Through its subsidiaries, including Batumbu in Indonesia, Validus has disbursed over US$3.5 billion in loans, significantly contributing to the growth and resilience of SMEs across the region.

SME Financing Gap in Indonesia and Southeast Asia:

SMEs are the backbone of Southeast Asia’s economy, comprising 97% of all businesses and employing a substantial portion of the workforce. Despite their critical role, many SMEs face considerable challenges in accessing formal financing, resulting in a financing gap estimated at over US$300 billion in the region. In Indonesia, this issue is particularly pressing, with many small businesses struggling to secure the necessary funds for growth and expansion. Validus Group’s unique strategy, leveraging technology and data analytics, is designed to address this gap effectively. By providing tailored financing solutions through platforms like Batumbu, Validus is well-positioned to drive financial inclusion and foster sustainable economic development.

For more information, please contact:

For FMO: Monica Beek | [email protected]

For Validus: Nikhilesh Goel / Milena Naitoh | [email protected] / [email protected]

For Batumbu (Validus Indonesia): Glant Saputrahadi Tan / Jessica Christianty | [email protected] / [email protected]