How your investment helped long-time borrower Validus achieve a milestone investment

Indonesian SME lending platform Validus is going places, and we’re excited to share their recent achievements with you. 

What has the 3.5 million euros of investments raised by the Lendahand crowd help make possible for Validus so far?

When Validus first started raising financing on Lendahand in July 2022, they were in business for only 6 years. Through their digital lending platform, Validus gives access to short-term growth financing to entrepreneurs in Indonesia. Validus has been growing out of the start-up phase steadily. Since 2021, Validus has quintupled its total funds disbursed, reaching US$5.17 billion. Their efforts in addressing the unmet financing needs of SMEs recently were recognized with a 50 million USD investment from the HSBC Group.

We are very pleased to be offering projects for Validus so they can improve access to growth financing for many entrepreneurs in Indonesia. Besides strengthening the local economic growth in Southeast Asia, Validus further diversifies the portfolio of many crowd investors on Lendahand. 

The Stats: 

• Active on Lendahand since: July 2022
• Total raised: €3,449,937
• Already repaid: €2,656,779
• Interest disbursed: €127,935
• Payments on time: 25 out of 25 (100%)

How does Validus make a difference in Indonesia? 

With around 280 million people, Indonesia is the fourth most populous country in the world. The heart of its economy lies in 64.2 million micro, small, and medium-sized enterprises (MSMEs). These businesses drive 61 percent of Indonesia’s GDP and provide jobs for 97 percent of the workforce. Over the past decade, Indonesia’s economy has seen steady and impressive growth, cementing its place as a key emerging market.

A World Bank report highlights that Indonesian MSMEs face major challenges in securing financing due to the stringent requirements imposed by banks. Despite various government initiatives, SME loans account for only about 20 percent of total bank loans. That’s where Validus is moving the needle, making ongoing efforts to bridge the financing gap for SMEs in Indonesia.

Validus drives growth financing to the underserved SME sector via funds from institutional investors and individual investors, like the Lendahand crowd. They are active in Indonesia, Vietnam, and Thailand, though the financing the group receives from Lendahand is solely for their operations in Indonesia.

Their client base is quite balanced. They vary from rural businesses, such as small stores for daily needs like medicine, soap, and milk, to FMCG (fast moving consumer goods like food and personal care products) distributor businesses. Further on the growth financing ladder are the virtual and online service agencies with offices in the capital city of Jakarta.

What do entrepreneurs need the growth financing for?

Validus provides its clients with cashflow financing to bridge term payments from their clients. Imagine an online event organizing agency who needs to be able to make down payments for an event, and will only get their full invoice paid by their client after the event has ended. The same goes for FMCG businesses, who need the financing for their operational costs between buying their goods and selling them.

Thanks to photographer couple Opmeer, we have had the opportunity to look beyond the financial transactions we share. Opmeer has visited Validus’ clients for Lendahand twice already, capturing the impact and stories of local entrepreneurs.

During their most recent visit in 2024, Opmeer met Nelly in her family business. Nelly has been running the business since 1997, distributing non-alcoholic drinks and mineral water to wholesalers in South Jakarta. Validus provides her with security by covering invoices upfront, which Nelly can pay back later. This enables her to pay suppliers on time without straining her cash flow. Thanks to Validus, Nelly has been able to stabilize her cash flow and expand her team from 20 to 50 employees.

Explore how you can invest in impactful businesses like Nelly's. Head to our projects page to see the details of their projects and make a change.