The partnership between Siam Validus and SCG is intended to support the growth of Thai SMEs while providing investors with high-yield alternative investments via crowdfunding


The partnership between Siam Validus and SCG is intended to support the growth of Thai SMEs while providing investors with high-yield alternative investments via crowdfunding

Siam Validus partners with SCG and aims to foster financial inclusion for underserved Thai SMEs, enabling SMEs to raise funds for their business without collateral through the Siam Validus crowdfunding platform.

Ms. Wareemon Niyomthai, CEO of Siam Validus, said, “SMEs are the backbone of the Thai economy and despite this they often face difficult challenges in accessing the funding they need for liquidity and the growth of their business. Through our crowdfunding platform, SMEs will be able to appeal to retail investors in the capital markets to raise funds ranging from 0.2 million baht to 30 million baht. Siam Validus will disburse around three billion baht to micro and small businesses in Thailand by the end of 2022, having already crossed 1 billion baht so far with zero non-performing loans. Our partner SCG Distribution has a deep understanding of its industries and access to a broad ecosystem of SMEs, and our partnership will allow us to leverage synergies to expand access to credit and alleviate liquidity challenges for SMEs during this time. difficult due to the Covid-19 epidemic. .”

Validus has successfully raised over 30 billion baht for ASEAN SMEs and aims to double the amount to 60 billion baht in the next 12 months.

Ms Wareemon added: “At the same time, we are democratizing access to an exciting new asset class traditionally reserved for high net worth individuals and institutional investors. With the recent reduction in deposit protection and volatility in the market, retail investors are looking for alternative asset classes for investments. Through Siam Validus, retail investors can invest in carefully selected creditworthy, high-growth SMEs through debentures with variable duration and yields that match their risk appetite, and earn 4% interest at 15% back in the form of debt repayment on their investments. The new asset class offers a good opportunity for portfolio diversification as well as returns above bank deposit rates. The Siam Validus crowdfunding platform is regulated by the Securities and Exchange Commission (SEC), so investors can be assured that their investment activities will be conducted on a transparently regulated platform.

“As Validus Group, we have over six years of experience and expertise in digital SME finance, and our number one position as the leading SME growth finance platform across all markets. “Southeast Asia in which we operate attests to our robust, data-driven approach to SME lending. Using alternative trade and credit data, we have developed proprietary credit scoring models to assess effectively Siam Validus’ growing SMEs, which are typically unable to secure financing from banks without placing collateral or financing Our proven business model has helped bridge the cash flow gap of over 50,000 SMEs in South Asia. Southeast and to produce mutually beneficial results for SMEs, investors and partners.

Mr. Bunn Kasemsup, Chief Strategy & Investment Officer of SCG Cement & Building Materials, said, “SCG is committed to following environmental, social and governance (ESG) business guidelines to create sustainable development. Among our many initiatives is financial inclusion. Through Siam Validus’ crowdfunding platform, we are confident that we can create significant and lasting value for SMEs in our ecosystem – customers, distributors, sub-distributors and partners will benefit from alternative access to funding. In turn, SMEs with healthy cash flows will strengthen and benefit SCG. Together with Siam Validus, we are excited to be at the forefront of innovation in how SMEs can raise funds in capital markets, and we look forward to further advancing SME growth in Thailand. .

SMEs are an integral part of the Thai economy, accounting for 95% of all businesses and 80% of employment in the country. Despite this, SMEs can only access 1,289 billion baht of capital, which is only around 10% of the country’s GDP.

Since its launch in 2015, Validus has disbursed over US$1 billion in loans to SMEs in Singapore, Vietnam, Indonesia and Thailand. The company is backed by highly reputable VCs including FMO, Vertex Growth, Vertex Ventures Southeast Asia and India, AddVentures by SCG, K3 Ventures, Openspace Ventures, and VinaCapital Ventures.


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