Batumbu Approved For Digital Funding License
Batumbu, the Indonesian affiliate of Southeast Asia-based small business finance platform Validus, has now been approved as a licensed digital finance platform, according to a press release.
The Indonesian Financial Services Authority (OJK) granted the license following a “detailed and thorough” licensing process, and the approval reflects “a strong commitment to empower the growth of micro, small and Indonesian medium-sized enterprises (MSMEs) through sustainable and rapid financing. “
Jenny Wiriyanto, CEO of Batumbu, said the company “will step up efforts to improve access to finance and financial literacy within business ecosystems across provinces in Indonesia ”, and the team seeks to accelerate financial inclusion for small businesses and“drive a more advanced and resilient Indonesia. “
“Our success in obtaining the license further validates our robust technology, processes and innovative business model,” Wiriyanto said, according to the statement. “We will build on our strategic partnerships to expand our reach and hope to increase lending to more MSMEs in local supply chains. “
The statement said Batumbu, which was formed in 2019, has so far disbursed $ 207 million. During COVID, the statement said Batumbu worked with small businesses to adapt to the needs of the times and position themselves for the recovery.
This is now the third time that Validus has been approved as a financial platform, with the other two being in Singapore and Thailand, the statement said.
Validus often works with developing economies and businesses, including Vietnam. In this country, 97 percent of businesses have fewer than 100 employees and often do not have banking services.
Validus co-founder Nikhilesh Goel said the reason was that many of them lack the financial literacy and credit and collateral records needed to borrow from traditional banks and lenders. He said the FinTech landscape in Vietnam hasn’t really taken off yet. However, that is changing as digital payments start to increase there, just as they are in other parts of the world.