«We want to empower investors with more information and smart data,» Vikas Nahata from Validus Capital says in an exclusive interview with finews.asia.
Mr. Nahata, why is the online lending industry so important to economic growth?
Small and medium-sized enterprises (SMEs) form the backbone of most economies, and in Singapore it contributes to over 50 percent of the GDP, while employing over 70 percent of the population. Yet, they have often faced headwinds in terms of financing.
Growth orientated SMEs are often not able to gain funding due to high rates and lack of risk appetite. Providing this growth capital to those deserving SMEs, is the key role played to industry players such as Validus Capital.
What is special about Validus Capital’s offering to SMEs?
We want to connect astute global investors to quality Singaporean businesses. We want to bring change and choice to the market. We want to empower our investors with more information and smart data. We want to provide even greater options for our borrowers to grow their businesses and protect their futures.
«We extract and share smart data from our alliances with credit bureaus»
To do this, Validus Capital has developed a unique triple layer of due diligence, which sets us aside from our competitors.
We are the first SME-focused platform to work with Professor Jin-Chuan Duan and his team at the Credit Research Institute at the National University of Singapore (NUS). We take advantage of their world-class mathematical modelling to uncover the probability of default of Singapore SME borrowers.
We extract and share smart data from our alliances with credit bureaus. These are then cross-referenced against our own, 150-point due diligence check on the financial health of the business and the key directors.
What management expertise does Validus Capital bring?
The founders and employees have a deep knowledge pool of the sector and market.
«We will be applying for the Capital Markets Services Licence in due course»
Most importantly, we emphasize with the SMEs who are looking for capital to grow, and the investors who are looking for greater security and opportunity with their investment. Our Sales Director, Jonaphine Goh, has over ten years sales experience in SME financing, with expertise lying in structuring short and medium term financial products to suit customer needs.
Whats the future for Validus Capital?
Our future is about building trust and growth. From our Singapore base, we have the advantage of being in one of Asia’s financial centres with the security of robust IP protection. We look to other ASEAN geographies, which are rich with reliable data and a prudent jurisdiction, to grow further.
What is next for the P2P lending industry?
We believe a well-governed industry delivers for the SME borrowers, investors, and ultimately the wider economy. Our internal systems and due diligence operate at the highest industry standards. We support the efforts of The Monetary Authority of Singapore (MAS) to regulate in this burgeoning sector and we will be applying for the Capital Markets Services Licence in due course.
Vikas Nahata is the Co-Founder and Director of Validus Capital, Singapore. Previously, he was the Director and Joint Managing Director of Bengal NRI, a township project in Eastern India. He has also co-founded start-up’s in areas of Telecom Software, Real Estate development and Manufacturing. Currently, Nahata serves as a member of the Entrepreneur’s Organization, Kolkata and sits on the groups Global Technology Committee, representing South Asia.
Validus Capital is a Singaporean SME financing platform an online lending platform that brings together quality Singaporean SMEs with astute and accredited global and Singaporean investors.
