Fintech Siam Validus first foreign firm to be granted debenture crowdfunding license in Thailand

• First SME debenture crowdfunding license issued by the Securities and Exchange Commission of Thailand (SEC) to a foreign Fintech firm since introduction of debenture crowdfunding regulations in 2019 
• Siam Validus marks Validus’ fourth market in Southeast Asia, iterating its commitment to help drive financial inclusion for SMEs in the region
• Since its launch in 2015, Validus has facilitated over S$700 million in SME financing through its entities in Singapore (Validus), Vietnam (Validus Vietnam) and Indonesia (Batumbu)

SME crowdfunding platform Siam Validus has become the first foreign fintech firm to be granted a debenture crowdfunding license by the Securities and Exchange Commission of Thailand (SEC). 

The license will allow Siam Validus, a joint venture between award-winning regional fintech Validus and SCG Distribution, a leading company focusing on distribution and retail business, to support SMEs using SME financing solutions via debt crowdfunding, and drive capital flow and investment that is essential for the growth of SMEs and Thai economy. 

The licensing follows a rigorous due diligence process by SEC, and reflects the regulator’s commitment to improve funding access for small and medium-sized enterprises (SMEs). Validus’ Co-founder and Executive Director Mr. Vikas Nahata said, “The license marks a significant milestone and paves the way for us to help drive the future of SME financing in Thailand. We thank the SEC team for facilitating the process so we are able to bring best practices and a strong governance framework that’s already in place from our regional operations to Thailand.” 

SMEs play a pivotal role in Thailand’s economy, accounting for over 95 per cent of businesses and supporting more than 80 per cent of the country’s employment. However, despite its importance, the SME financing gap stands at 1.289 trillion THB, or 10 per cent of its gross domestic product (GDP). 

Wareemon Niyomthai, CEO of Siam Validus, shared that many SMEs in Thailand are often unable to access financing to meet cash flow needs, and are unable to shorten their cash flow cycles to capitalise on opportunities. “Improving the accessibility of SME financing remains critical in order to drive their growth as well as that of our economy. We are working with our Corporate partner closely, to support their vendors and dealers, and with Siam Validus’ unique ability to effectively leverage technology and data we are confident we will meet the financing needs of underserved SMEs.”

Issaree Rojanasukarn, Corporate Development Manager at Siam Validus, said, “Fintech innovation is extremely important for SMEs in Thailand in these times. This is extremely crucial for our SMEs, particularly during this period as we emerge out of the pandemic.” 

Siam Validus will operate using the same proprietary technology and award-winning credit scoring systems used by Validus that will be further adapted and tailored to the unique needs of SMEs in Thailand. Validus recently won the top award at the Monetary Authority of Singapore Fintech Awards 2020 for the Singapore Financial Institution category.

Since its launch in 2015, Validus has facilitated over half a billion (S$700 million) in SME financing across Singapore, Vietnam and Indonesia. The company is backed by highly reputed VCs including AddVentures by SCG, FMO, Vertex Ventures Southeast Asia and India, and Vertex Growth Fund, with a total funding of around S$50 million to date.