Singapore-based peer-to-business (P2B) lending platform Validus Capital has set up shop in Indonesia through its subsidiary Batumbu, in partnership with Indonesia’s Triputra Group.
Validus targets small and medium enterprises (SMEs) while Batumbu connects SMEs in Indonesia with accredited, institutional, and high net worth investors to provide loans for business growth. While Batumbu will use a platform similar to that of Validus to develop scoring systems for SMEs seeking financing, its operations will be localized.
Indonesia is the first country Validus has formally expanded into beyond Singapore. There’s plenty of demand for lending services in Indonesia. SMEs are a key contributor to Indonesia’s economy, but the lack of access to financing limits their growth. The reason why borrowers flock to P2P lending platforms in Indonesia.
According to estimates by Indonesia’s Financial Services Authority (OJK), P2P lending platforms disbursed a total of USD 1.14 billion in loans in 2018, marking 681.25% year-on-year growth.
