GXS Bank Acquires Digital Lending Platform Validus Capital

First such deal by digital bank here allows it to tap platform's SME customer base

- Chor Khieng Yuit

GXS Bank, which is backed by Grab Holdings and telco Singtel, said on April 14 that it has received approval from the Monetary Authority of Singapore (MAS) to acquire Validus Capital, the Singapore business of Validus Group.

Validus Capital, which is one of the largest digital lending platforms for small and medium-sized enterprises (SMEs) in Singapore, will become a wholly owned subsidiary of GXS from April 15.

This is the first such acquisition by a digital bank in Singapore.

Mr Vishal Shah, group head of business banking at GXS Bank, said the deal will be fully funded by cash, but exact details are confidential.

It comes in an uncertain economic environment, contributed by the tariff flip-flops of US President Donald Trump.

Mr Vishal said the bank's management and board discussed the situation and concluded that the deal should go ahead as SMEs will still need financing regardless of the macroeconomic environment.

With the acquisition, GXS will be able to tap Validus' existing SME customer base to serve different types of business entities, ranging from micro to small and medium-sized enterprises.

It will also broaden its suite of business services to include supply chain financing and working capital loans.

Presently, GXS has a business banking solution, GXS Biz Account, but this is only for single-ownership businesses, such as sole proprietorships.

Meanwhile, the GXS FlexiLoan Biz is an unsecured line of credit for these sole proprietors.

Working capital loans provide financing for daily business and cash flow needs.