SME financing platform Validus Group and Fintech Nation have announced the creation of a $10-million private credit secured fund to provide embedded finance solutions to small businesses in Thailand and Indonesia.
The Embedded Finance Fund, which is expected to leverage data-driven underwriting models and ecosystem partnerships for real-time credit decisions, has completed its first close and begun deploying capital to SMEs.
The companies said in a joint statement that the fund targets sectors such as supply chain, consumer goods, and F&B, with a focus on underserved borrowers.
“The opportunity to close the SME credit gap in emerging markets demands new thinking,” said Milena Naitoh, group head of corporate development and capital markets at Validus. “This fund is a step toward building inclusive financial ecosystems.”
The fund operates by targeting embedded finance opportunities in key economic sectors, channelling financing through Validus’s digital lending platforms—Siam Validus in Thailand and Batumbu in Indonesia.
Fintech Nation, a public benefit corporation, said the fund aligns with the UN Sustainable Development Goals, particularly those promoting financial inclusion and partnerships for development.
The firm said the formation of the fund aims to address ASEAN’s SME credit gap, which is estimated at over $320 billion. SMEs account for more than 99% of businesses in Thailand and 97% in Indonesia but remain underserved by traditional lenders, the companies’ statement said.
“Communities thrive when their SMEs thrive. At Fintech Nation, we believe that SMEs are the foundation of sustainable societies — they are the engines of innovation, employment, and local prosperity. Through this Fund, we reaffirm our commitment to using financial technology as a force for sustainable development, empowering entrepreneurs to build stronger, more resilient communities,” Vanessa Ho, co-founder of Fintech Nation Fund, said.
Validus has disbursed over $5 billion in loans across Southeast Asia to date and holds regulated lending licenses in multiple markets.
Just last month, GXS Bank — a digital lender backed by Grab and Singtel — secured regulatory approval to acquire Validus Capital, the Singapore lending unit of Validus Investment Holdings. The deal marks the first time a locally licensed digital bank in Singapore has acquired a homegrown fintech firm,
In a conversation with DealStreetAsia after the announcement of the acquisition, Validus Group CEO and co-founder Nikhilesh Goel said that the group is sharpening its focus on Indonesia and Thailand, its two largest and most active markets.
