SINGAPORE-BASED fintech Validus has attracted over S$50 million from London-based institutional asset manager Fasanara Capital to boost small and medium-sized enterprise (SME) lending for underserved and unbanked SMEs in Singapore.

This includes a S$20 million investment in SME financing on Validus' marketplace and S$30 million in new funds towards Validus' Enterprise Financing Scheme.

These funds are earmarked for Singaporean SMEs under the government-assisted financing scheme, to provide cashflow support and growth capital for those impacted by the pandemic.

Fasanara and Validus are also exploring similar financing solutions in support of government loan schemes in markets across South-east Asia, where Validus has a presence in. This will further efforts to help SMEs recover from the impact of the pandemic and to position for growth.

"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 in the press statement.

As Singapore's largest SME financing platform, Validus addresses SMEs' working capital and cash flow needs by providing fast and simple access to short-term, collateral-free financing from accredited investors. Fasanara joined Validus as a lender in 2019, and has since funded more than 2,800 SME loans through Validus' SME financing marketplace.

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Said Nikhilesh Goel, co-founder and group chief executive officer of Validus: "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."

Francesco Filia, CEO of Fasanara Capital, said that both companies share the same commitment in addressing the SME financing gap through providing stable funding.

"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," he added.

Validus recently reported its strongest quarter to date with total loan disbursements exceeding S$150 million. Since 2015, Validus has disbursed over S$850 million in SME loans and have helped boost lending in key supply chains across the region.