Teaming up with award-winning SME lending marketplace Validus, London-based alternative asset management firm Fasanara Capital will provide over $50 million in SME lending for underserved and unbanked SMEs in Singapore.
Founded in 2011, Fasanara is a quantitative fintech investment company that offers access to disruptive financial products and real-economy impact investment solutions. Focusing on alternative assets, it manages close to $2 billion in assets under management. It is committed to supporting unbanked SMEs globally.
Validus is the largest SME lending marketplace in Singapore with a strong presence across Indonesia, Vietnam and Thailand. It uses data analytics and AI to drive growth financing to underserved SMEs. It provides quick access to short-term, collateral-free financing from accredited investors.
“With Validus we found a partner that shares the same commitment in addressing the SME financing gap through providing stable funding,” says Francesco Filia, CEO of Fasanara Capital.
A lender on Validus since 2019, It has financed more than 2,800 SME loans via Validus’ SME financing marketplace.
“Validus’ proven technology and ‘glocal’ structure gives them a strategic advantage in implementing best practices, strong credit models and governance framework - ingredients for a mutually beneficial partnership that we can leverage across other markets in the region,” Filia adds.
Validus has experienced record growth during the pandemic. It reported its strongest quarter to date with total loan disbursements topping $150 million. Since 2015, Validus has disbursed over S$850 million in SME loans
Fasanara is committed to investing over $20 million on Validus’s marketplace to fund SME financing facilities. It will also provide $30 million in new funds to the latter’s Enterprise Financing Scheme. These funds are earmarked for Sinaporean SMEs under the government-assisted financing scheme.
The National Business Survey 2020/2021 found that two out of three local firms (63%) have been negatively impacted by the Covid-19 pandemic. The funds invested by Fasanara are intended to provide cashflow support and growth capital for these firms.
Says Milena Naitoh, Head of Investor Relations and Corporate Development at Validus,“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.”
Fasanara and Validus are now looking to provide similar financing solutions in support of government loan schemes in other regional countries. They are looking to use the latter’s strong global networks to support SMEs in Vietnam, Indonesia and Thailand where Validus is also present.
“We are pleased to attract such strong partners to our platform, and are honoured by the trust and support that Fasanara has in us. This further validates our robust technology, processes, and innovative business model while reiterating Validus’ commitment to empowering and driving financial inclusion for SMEs,” says Validus co-founder and group CEO Nikhilesh Goel.
