Fresh out of US$15.2 million funding from Dutch bank FMO, the P2B lending platform marks its first Southeast Asia market outside Singapore

SME-targeted peer-to-business (P2B) lending platform based in Singapore Validus Capital (Validus), officially launches its Indonesian arm under the name Batumbu. Validus is doing so under the partnership with Indonesia’s Triputra Group.

Batumbu marks Validus’ first Southeast Asian market outside of Singapore and keeps its mission in driving financial inclusion and promoting inclusive growth among Southeast Asia’s small and medium enterprises (SMEs).

Batumbu seeks to connect Indonesia’s SMEs with accredited, institutional, and high net worth investors. Welcomed SMEs are ranging from the food and beverage (F&B), services, engineering, to the construction industries sector that needs financing to drive business growth.

“Our expansion into Indonesia serves as a significant milestone for us. Sharing our insights and applying key learnings from Singapore allows us to take a proven and sustainable business model and apply this to a larger market – a market where I have personally spent a few years helping SMEs to grow,” said Ajit Raikar, Chief Executive Officer and Co-founder of Validus Capital.

In Southeast Asia, a report by McKinsey in 2016 showed that there’s SME financing gap that accounts for about US$175 billion, with US$75 billion stems from Indonesia alone. In 2018, P2P lending platforms in Indonesia disbursed a total of US$1.4 billion, representing a 681.25 per cent year-on-year growth, as estimated by Otoritas Jasa Keuangan (OJK) – Indonesia’s financial services authority.

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Through their Three P approach of having the right People, Platform and Partnership, Batumbu said it plans to bring together lenders and SMEs to build better business communities in emerging markets and promote inclusive growth among the region’s SMEs.

Batumbu is led by a local management team with experience in SME banking and entrepreneurship. helmed by Sonny Christian Joseph. Joseph has over 23 years in SME banking in Indonesia and was previously Head of SME Banking in BTPN.

“We’ve seen a number of SMEs and business owners unable to jump at growth opportunities due to an inability to draw on a bank loan or alternate means of financing. This is where Batumbu and Validus come in. We believe that by providing SMEs with access to sustainable financing, we are paving the way for a stronger economic foundation for our country.” said Joseph.

Batumbu will use similar proprietary technology and credit scoring systems as Validus to help provide Indonesia’s SMEs with access to growth financing. These include data analytics, machine learning, and artificial intelligence to provide SMEs with access to a fast, reliable, and affordable source of funding.

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Batumbu’s platform is said to be adapted for SMEs in Indonesia, with the same processes, technology, and robust credit algorithms proven successful by Validus.
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