GXS Bank has received regulatory approval to acquire Validus Capital, the Singapore-based subsidiary of Validus Group, in an all-cash deal that will be completed on 15 April 2025.
The acquisition marks the first time a homegrown digital bank in Singapore is taking over a local fintech firm.
Validus Capital, which launched in 2015, has provided over US$1 billion in financing to SMEs in Singapore, focusing on supply chain and working capital loans.
Once the deal is completed, Validus Capital will operate as a wholly owned subsidiary of GXS Bank.
The bank said this move will enable it to expand its SME financing capabilities, including trade finance and supply chain lending, while continuing to serve sole proprietors through existing offerings.
This includes the GXS Biz Account—which credits daily interest and charges no fees—and the GXS FlexiLoan Biz, an unsecured line of credit.
These new financing options will be introduced in Singapore first and rolled out regionally in the coming months.
The integration of Validus Capital is expected to be completed by the end of the year.
Muthukrishnan Ramaswami, Group Chief Executive Officer, GXS Bank said,
“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.”
GXS Bank said it will work with Validus Group to ensure a smooth transition for customers and partners, with no disruption to existing loans or services.
Validus Group will retain its Singapore headquarters and shift its focus to its operations in Indonesia—where it runs under the Batumbu brand—and Thailand.
The company said Batumbu has been profitable for the past three years, and the group as a whole has now reached profitability.
Validus has built its SME lending business on an anchor-led supply chain financing model, supported by proprietary technology, data science, and AI capabilities.
In Vietnam, Validus has ceased new loan disbursements due to delays in regulatory approvals, and will now focus on debt collection while continuing to serve existing investors and customers.
Its loan book in the country has been reduced by more than 50% over the past year.
Nikhilesh Goel, Co-Founder and Group CEO of Validus Group said,
“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.”
