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Validus, a Singapore-based digital SME lending platform, secures $50M debt financing to help enterprises in Indonesia | TechCrunch

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Validus, a Singapore-based digital SME lending platform, secures M debt financing to help enterprises in Indonesia | TechCrunch

Validus, a Singapore-based digital lending platform for small and medium businesses, has secured $50 million in debt financing from HSBC under the ASEAN Growth Fund strategy.

Validus will use the proceeds to support the financial inclusion of micro, small and medium enterprises (MSMEs) in Indonesia, addressing the challenges they face in accessing financial resources.

With 64.2 million MSMEs contributing 61% of Indonesia’s GDP, according to Indonesia’s Ministry for Economic Affairs, the potential for growth is immense. These MSMEs employ about 119.6 million people, which is 97% of the total workforce in the country. However, only about 17.5 million MSME players are tapping into the online ecosystem and e-commerce. Indonesian MSMEs face significant challenges in accessing financing, mainly due to commercial banks’ stringent operational, reporting, and collateral requirements, as per a 2017 report by the World Bank. Despite government initiatives, only around 20 percent of bank loans go to MSMEs, the World Bank report said.

Vikas Nahata (Executive Chairman) and Nihkilesh Goel (CEO) co-founded the business in Singapore in 2015. They developed a supply chain-focused lending model that utilized non-traditional data access through partnerships with traditional banks and international institutions. The company has since expanded to include Indonesia (Batumbu), Thailand (Siam Validus), and Vietnam (Validus Vietnam).

“Traditional banks across the SEA region still rely on legacy credit evaluation methods for small businesses, and they are overly reliant on historical financials and real estate-backed collateral,” Goel said. “For a region experiencing GDP growth of 5-6% per annum, small businesses need access to stable and accessible working capital to grow their businesses and contribute to job creation and nation building. This is where Validus plays a major role as the largest digital SME financing provider across ASEAN.”

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Its users are MSMEs, who primarily borrow for their short-term working capital needs, Goel told TechCrunch, while lenders include major international institutions (Citi, HSBC, FMO, Credit Saison, OikoCredit) and leading local banks (CIMB Niaga, Bank Mandiri) across Indonesia and Thailand. Goel mentioned that one of its differentiators is over 100 unique partnerships throughout the Southeast Asia region.

“Validus is the largest SME financing marketplace across the South East Asia region by outstanding loan book or monthly loan disbursals where we are currently averaging $150 million of new loan disbursals per month,” Goel said.

(Left) Vikas Nahata, co-founder and Executive Chairman (Right) Nikhilesh Goel, co-founder and Group CEO
Image Credits: Validus

In the past three years, the startup has experienced growth in both revenue and net profits.

“Over the last three years, we have grown our consolidated Group revenues at a 69% CAGR and more importantly, our Indonesia business, which is our largest market amongst the four countries we operate in – has been net profit positive since 2022 and a source of positive cash flow for the Group,” Goel told TechCrunch. “Our EBITDA margins are over 50% and at a consolidated Group level we are aiming to be cash flow positive by early next year.”

The company has more than 300 staff across five countries, but it did not disclose how many customers it has.

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Its has raised approximately $75 million in total equity funding. Its previous investors include Vertex Ventures Southeast Asia and India, Vertex Growth, FMO, 01Fintech, NongHyup Financial Group, Norinchukin Bank, Aizawa Asset Management, and Lotte F&L.

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9Pay Presents All-in-One Efficient Financial Solution at Singapore FinTech Festival

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9Pay Presents All-in-One Efficient Financial Solution at Singapore FinTech Festival

HANOI, Vietnam, Nov. 14, 2024 /PRNewswire/ — From November 6 to 8, 9Pay showcased comprehensive payment services in Vietnam to businesses at the Singapore FinTech Festival 2024. 9Pay’s participation at one of the largest global Fintech events has attracted significant attention from companies and industry experts.

Singapore FinTech Festival (SFF) 2024 is organized by the Monetary Authority of Singapore in collaboration with the Association of Banks in Singapore for the 9th time at the Singapore EXPO Convention & Exhibition Center. The event attracted 65,000 participants from 134 countries and regions, including more than 3,400 government and regulatory attendees across 665 central banks, regulatory institutions, and other government organizations.

For 9Pay, attending SFF 2024 in Singapore is a strategic step to strengthening its position in fintech in Southeast Asia and the world. Coming for the first time as an official exhibitor of this famous financial event, 9Pay was welcomed warmly by many financial professionals and clients, as a trusted fintech company in Vietnam. This has contributed to strengthening the position of Vietnam’s financial technology industry in the international area, demonstrating that Vietnamese fintech enterprises are ready to compete and integrate into regional and global marketplaces.

9Pay team at their booth at the Singapore FinTech Festival 2024

The State Bank of Vietnam’s 2024 report highlights Vietnam as a top FDI destination, ranking 25th globally and outpacing regional peers like Indonesia, the Philippines, and Thailand. Key drivers include Vietnam’s large domestic market, robust consumer spending, and proactive government reforms that streamline processes and bolster foreign trade. Improved technology infrastructure has made sectors like e-commerce, fintech, logistics, education, and tourism particularly attractive. With deep market insight, 9Pay, a licensed payment intermediary, has empowered numerous companies to thrive in Vietnam by offering seamless, all-in-one payment solutions.

As the leading payment service provider, 9Pay has established powerful partnerships with international PSPs and Remittances, allowing partners to receive payments seamlessly and facilitating smooth money transfers to Vietnamese beneficiaries. Typical instances include e-commerce platforms expanding in Vietnam that can easily collect payments and promote growth, and an online education provider that integrated 9Pay’s localized payment solution, simplifying tuition payments for Vietnamese students while improving user experience.

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Boost Business Efficiency with Collection – Disbursement and Payment Gateway Service

The 9Pay Collection and Pay-Out Service offers several standout benefits for partners aiming to expand and operate efficiently in Vietnam. One of key strengths is the Localized Banking Advantage, enabling partners to use 9Pay as a local bank account for seamless collection and disbursement, simplifying operations and enhancing financial workflows.

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Brazil's Finance Minister Signals Uncertainty Over Fiscal Package Announcement This Week

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Brazil's Finance Minister Signals Uncertainty Over Fiscal Package Announcement This Week
BRASILIA (Reuters) – Brazil’s Finance Minister Fernando Haddad said on Wednesday he is uncertain whether there is enough time to announce a spending containment package this week, adding that it will be released once President Luiz Inacio Lula da Silva gives the go-ahead. The market is eagerly …
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Cognition Therapeutics Reports Financial Results for the Third Quarter 2024 and Provides Business and Clinical Update

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Cognition Therapeutics Reports Financial Results for the Third Quarter 2024 and Provides Business and Clinical Update
Cognition Therapeutics, Inc.

– CT1812 slowed cognitive decline by 95% in Alzheimer’s disease patients with lower levels of plasma p-tau217 in a pre-specified analysis from Phase 2 SHINE study presented at CTAD –

– On track to report topline results from Phase 2 SHIMMER study investigating CT1812 in patients with mild-to-moderate dementia with Lewy bodies (DLB) by end of 2024 –

PURCHASE, N.Y., Nov. 13, 2024 (GLOBE NEWSWIRE) — Cognition Therapeutics, Inc. (Nasdaq: CGTX), a clinical-stage company developing product candidates that treat neurodegenerative disorders, (the “Company” or “Cognition”) today reported financial results for the third quarter ended September 30, 2024, and provided a business update.

“In the third quarter and recent weeks Cognition Therapeutics achieved one of the most important milestones in its history as the Phase 2 SHINE study results became available. Among the many findings in the SHINE study, new and compelling data presented at CTAD showed a near-total preservation of cognition (as measured by the ADAS-Cog11 and MMSE scales) in a sub-group of Alzheimer’s patients treated with CT1812 who had p-tau217 levels below median,” said Lisa Ricciardi, Cognition’s president and CEO. “We are moving rapidly to advance CT1812 in Alzheimer’s disease and plan to request an end-of-Phase 2 meeting with the FDA where we will review CT1812’s safety and tolerability profile as well as the totality of results from SHINE. We will seek alignment with the FDA on a pivotal Phase 3 program design in light of recent findings relating to lower levels of plasma p-tau217, an important biomarker of Alzheimer’s disease pathology easily measured with a blood test.”

Ms. Ricciardi concluded: “In addition to the substantial progress we have made with CT1812 in Alzheimer’s disease, we expect to report top-line results from our Phase 2 SHIMMER study in mild-to-moderate dementia with Lewy bodies (DLB) by the end of this year. DLB is the second most common neurodegenerative disease, yet few therapies have been studied in this indication and no disease-modifying treatments exist. SHIMMER will deliver safety and tolerability data in a second indication and potentially provide insights to be integrated into a larger clinical study in this under-studied and under-represented population.”

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Business and Corporate Highlights

  • Results of a pre-specified analysis from the Phase 2 SHINE study of CT1812 in participants with mild-to-moderate Alzheimer’s disease were presented in an oral session at the Clinical Trials on Alzheimer’s Disease (CTAD) conference

    • Patients with baseline levels of p-tau217 below the median showed a 95% slowing of cognitive decline on the ADAS-Cog11 scale and 108% slowing of cognitive decline on the MMSE scale*

    • Lower levels of plasma p‑tau217 are indicative of less advanced Alzheimer’s pathology, and we believe may identify patients likely to have a greater response to therapy

    • The CTAD presentation by Dr. Michael Woodward and an archive of investor webinar are available on the Cognition website

  • Baseline characteristics of participants enrolled in the Phase 2 SHIMMER study were also presented at CTAD, confirming enrollment of individuals with mild-to-moderate DLB

  • Continued enrollment in Phase 2 START study (NCT05531656) in early Alzheimer’s disease and Phase 2 MAGNIFY study (NCT05893537) in geographic atrophy secondary to dry age-related macular degeneration

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