Fasanara Capital, an alternative asset manager from the UK, said it has teamed up with Singapore fintech firm Validus to provide S$50 million (US$37.4 million) that will boost lending for small and medium enterprises.
The amount includes a US$15 million investment in SME financing on Validus’ peer-to-business financing platform and a US$22.4 million injection into Validus’ Enterprise Financing Scheme. Under the scheme, Validus would offer government-assisted loans for SMEs.
Fasanara joined Validus as a lender in 2019 and has since funded over 2,800 SME loans through the fintech startup’s marketplace. In addition to the investment announcement, the two companies said they are currently exploring similar financing solutions to support government loan schemes in markets across Southeast Asia.
“Increased access to working capital for SMEs will support business recovery, which will in turn drive job creation and enable the economy to bounce back faster,” said Milena Naitoh, head of investor relations and corporate development at Validus.
According to a survey by the Singapore Business Federation, roughly 63% of businesses in the city-state have been negatively affected by the Covid-19 pandemic, experiencing an average revenue decrease of around 31%.
Amid the global crisis, Validus has seen record growth and has recently reported its strongest quarter, with total loan disbursements exceeding US$112.3 million. According to the company, since it was founded in 2015, it has disbursed over USS$636 million in SME loans across the region.
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