Validus, a Singaporean lending platform for small and medium-sized businesses, is buying CitiBusiness’s loan portfolio for an undisclosed amount to bolster its customer base and top-line and expand its growing look book.
Co-founder and CEO of Validus, NikhileshGoel, reported to TechCrunch that the fintech expects to generate synergies with the loan portfolio of CitiBusiness, Citi Singapore’s small banking unit. CEO Goel added that it is a portfolio of loans to many hundreds of small businesses in Singapore, which is the Validus’ target market.
Goel said that the acquisition would be financed through a securitization facility Validus is arranging with various global financial institutions. Validus’ purchase of CitiBusiness’ loan portfolio will be completed in April 2022.
This will be Validus’ second acquisition. Last year, the fintech startup acquired KlearCard, a Singaporean business payments, and expense management platform.
In June 2021, Citi Singapore was widely reported closing its CitiBusiness unit, which serves small and medium-sized enterprise (SME) clients. Citigroup has agreed to sell its Southeast Asia retail operations in Indonesia, Thailand, Vietnam, and Malaysia to Singaporean United Overseas Bank for roughly $3.7 billion in January 2022.
Since its last financing round in May 2020, Validus has grown its team substantially, adding over 25% new hires. In January 2022, the firm crossed a significant milestone of more than $1 billion (SG$1.6 billion) in total funds disbursed across over 50,000 loans to small businesses in Indonesia, Singapore, Thailand, and Vietnam.
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