GXS Bank announced that it has received regulatory approval to acquire Validus Capital, the Singapore subsidiary of Validus Investment Holdings. This is a first-of-a-kind acquisition of a local fintech company by a homegrown digital bank in Singapore.
Validus Capital is one of Singapore’s largest digital lending platforms for small and medium-sized enterprises (SMEs). Established in 2015, it has disbursed over $1 billion in supply chain financing and working capital loans to thousands of SMEs.
This acquisition is an all-cash deal that will be completed on 15 April 2025. Following this, Validus Capital will become a wholly-owned subsidiary of GXS Bank.
GXS Business Banking positioned to serve SMEs across all stages of growth. And with the acquisition, SMEs can lean on GXS Bank to support their diverse business and financing needs across their growth stages.
GXS Bank already serves single-ownership businesses like sole proprietorships through the GXS Biz Account and the GXS FlexiLoan Biz. The GXS Biz Account is an operating account that offers daily interest crediting and charges no fees, while the GXS FlexiLoan Biz is an unsecured line of credit.
Now, the bank can serve larger SMEs that are looking to optimise their cash flow and tap timely financing to capture business opportunities through short-term trade finance and supply chain financing. Validus Capital, a wholly-owned subsidiary of GXS Bank, will power these financing options.
Validus Capital’s integration into the GXS Bank family is expected to be completed by the end of the year. GXS Bank and Validus Group are committed to ensuring that the transition will be seamless for Validus Capital’s existing customers, partners, and vendors. All existing loans disbursed by Validus Capital will continue to be serviced without disruption.
KEY QUOTES:
“There are significant synergies from this acquisition. As a bank, we are leveraging our balance sheet strength, digital ecosystem, and regional network to enhance and extend Validus Capital’s digital lending solutions to more SMEs in the region.”
“Validus Capital’s suite of financing solutions enables GXS Bank to help SMEs unlock cash flows in a timely manner. Instead of waiting for payment for work done or goods supplied, SMEs will be able to take advantage of our supply chain finance and working capital loans, powered by Validus Capital. The sooner they receive capital, the faster they can invest in growth opportunities.”
- Muthukrishnan Ramaswami, Group Chief Executive Officer, GXS Bank
“We have pioneered the anchor-led supply chain model for fintech lending across ASEAN, and in Singapore in particular we have built a comprehensive SME business leveraging our capabilities in technology, data science and AI. We are pleased to partner with GXS Bank which shares our passion for financial inclusion across the underserved SME segment, and their acquisition of our Singapore business is a testament to the strong potential of the Validus model.”
“Validus Group will continue to be headquartered in Singapore and will redouble our commitment to our core markets in Indonesia (where we operate under the brand Batumbu), and Thailand where the untapped addressable markets are much larger and deeper. Batumbu has been highly profitable for the last three years and with this reorganisation, Validus is now profitable at a Group level – one of the few fintechs in the region to have achieved this milestone.”
- Nikhilesh Goel, Co-Founder and Group CEO of Validus Group
“Adding Validus Capital’s trade finance and value chain-led lending solutions into our suite of Business Banking offerings will enable us to comprehensively serve the diverse needs of micro, small- and medium-sized businesses. Together with our existing innovations such as instant digital account opening and daily interest crediting for a business operating account, we are ready to serve SMEs across all stages of growth. Our trade finance and supply chain offerings will be available in Singapore and rolled out progressively in the region in the coming months.”
- Vishal Shah, Group Head of Business Banking, GXS Bank
