Validus' Indonesian Arm Batumbu granted Full Digital Lending License from OJK
Validus' Indonesian subsidary Batumbu has reportedly received regulatory approval to operate as a licensed digital financing platform from the Indonesian Financial Services Authority (OJK).
The approval follows a detailed and thorough licensing process by OJK, and reflects Batumbu's strong commitment to empower Indonesian micro, small, and medium enterprises' (MSMEs') growth through sustainable and fast financing, the firm said in a press release.
Jenny Wiriyanto, CEO, Batumbu, said: “Our success in obtaining the license further validates our robust technology, processes and innovative business model. We will be building on our strategic partnerships to expand our reach and expect to boost lending to more MSMEs in local supply chains.”
“We'll also be ramping up efforts to improve financing access and financial literacy within business ecosystems across provinces in Indonesia. The Batumbu team is dedicated to accelerating financial inclusion for MSMEs, to drive a more advanced and resilient Indonesia,” Wiriyanto continued.
Since starting its operations in 2019, Batumbu has disbursed over SGD207 million and is today the top FinTech lending platform for MSMEs in Indonesia. In stepping up to support businesses during Covid-19 last year, Batumbu helped many MSMEs pivot their business and position for recovery and growth, resulting in annual growth of close to 650% in 2020. The strong performance is expected to continue as economic recovery and activity picks up.
Batumbu, or PT Berdayakan Usaha Indonesia, is the Indonesian arm of Southeast Asia's leading SME financing platform Validus, and had received OJK registration in April 2019.
Ajit Raikar, Co-Founder and Executive Chairman, Validus, said: “We thank the OJK team for playing an instrumental role in ensuring the responsible long-term growth of the industry. As a leading regional FinTech, Validus shares the same values and goal in addressing the financing gap, essential for the growth of MSMEs and the local economy.”
“Our 'glocal' structure gives us a strategic advantage in implementing best practices, strong credit models and governance framework across our markets,” Raikar continued.
Validus has received regulatory approval in three markets across Southeast Asia to date. The award-winning FinTech is also licensed in Singapore (Validus Capital) and Thailand (Siam Validus). Since its launch in 2015, Validus has facilitated over SGD775 million in SME financing across Singapore, Vietnam, Indonesia, and has just begun operations in Thailand. The company is backed by highly reputed partners including the Vertex Ventures Southeast Asia and India, and Vertex Growth Fund, Triputra Group, FMO, with a total funding of around SGD50 million to date.
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