Validus Group and Fintech Nation Announce US$10 Million Fund to Scale Embedded Finance for SMEs across Thailand and Indonesia

• Validus Group and Fintech Nation have joined hands to meet underserved SMEs’ financing needs through a US$10 Million fund.
• Fintech Nation is at the forefront in driving sustainable and inclusive financing in emerging markets with its mission closely aligned to the United Nations Sustainable Development Goals (SDGs).
• Validus Group has a successful track record in building its lending models through data-driven analytics and innovative funding structures within the SME financial ecosystems in Southeast Asia.

Validus Group, Southeast Asia’s largest SME financing platform, and Fintech Nation, a mission-driven Public Benefit Corporation focused on ecosystem innovation, today announced the formation of a US$10 million Embedded Finance Fund (the “Fund”) dedicated to supporting small and medium enterprises (SMEs) in Thailand and Indonesia. The Fund has successfully completed its first close and has already deployed its first tranche into high-impact projects that provide much-needed growth capital to underserved SMEs.

With SMEs comprising over 99% of all businesses and employing more than 70% of the workforce in Thailand, and 64 million SMEs representing 97% of all businesses in Indonesia, there remains a vast unmet credit demand across Southeast Asia. The estimated SME credit gap in ASEAN exceeds $320 billion, highlighting the urgent need for innovative financing solutions. Validus and Fintech Nation’s new Embedded Finance Fund directly addresses this need, using technology and ecosystem partnerships to deliver fast, affordable, and flexible financing to SMEs through digital platforms.

Fund Mission and Objectives

The Fund’s mission is to drive sustainable development and inclusive growth across emerging markets, closely aligned with the United Nations Sustainable Development Goals (SDGs). By expanding access to affordable credit for SMEs through embedded finance models, the Fund seeks to promote Decent Work and Economic Growth (Goal 8) by empowering entrepreneurs to create jobs and build resilient businesses. It leverages fintech innovation to strengthen financial and digital infrastructure, advancing Industry, Innovation, and Infrastructure (Goal 9). By prioritizing underserved SMEs, the Fund directly addresses Reduced Inequalities (Goal 10), working to bridge the significant credit access gaps that hinder equitable economic participation. Most importantly, the collaboration between Validus Group and Fintech Nation exemplifies Partnerships for the Goals (Goal 17), demonstrating how strategic alliances can deliver scalable, systemic impact. Through this initiative, the Fund aspires to build stronger SME ecosystems, foster commerce, and catalyze long-term sustainable development across Thailand, Indonesia, and the wider ASEAN region.

Operating Model of the Fund

The Fund’s operating model focuses on embedded finance opportunities across critical economic sectors, including supply chain, food and beverages, and consumer goods. Financing will be provided via Validus Group’s digital lending platforms operating in Thailand (Siam Validus) and Indonesia (Batumbu). A unique feature of the Fund is its deep ecosystem partnerships with anchor players, enabling data-based underwriting and source-based collection mechanisms. By tapping into real-time transactional data and leveraging structured ecosystem collaborations, the Fund aims to make the lending process highly efficient, risk-mitigated, and scalable, ultimately unlocking new opportunities for inclusive SME growth at the grassroots level.

Leadership Comments

Vanessa Ho, Co-Founder of Fintech Nation Fund, shared:
“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.”

MilenaNaitoh, Group Head of Corporate Development & Capital Markets at Validus Group, said:
“The opportunity to close the SME credit gap in emerging markets demands new thinking. By combining data-driven underwriting models with innovative funding structures, we can build inclusive financial ecosystems that unlock growth and development for SMEs at every level. This Fund represents a critical step forward toward financial inclusion and economic empowerment, and we are excited to partner with Fintech Nation to realise this vision.”