Slide 1: Investing in SME Financing
T R AN S FOR MI NG S ME L EN DIN G Investing in SME Financing Investor Information Deck
Slide 2: Validus is an award-winning #1 ranked SME lending platform
2 Validus is an award-winning #1 Ranked SME lending platform by monthly loan disbursals SME financing platform VIETNAM #1 Ranked SME lending platform by monthly loan disbursals THAILAND • Founded in 2015 in Singapore, Winner of MAS Fintech Awards 2020 (Singapore #1 Ranked SME lending platform by mon
Slide 3: SMEs face challenges in accessing working capital under incumbent banking systems
3 SMEs face challenges in accessing working capital under incumbent banking systems Complex Procedures Simple, fast & online Singular offering Multiple loan products Long Response Time onboarding (<48 hours) Minimum requirements Pay-as-you-need Collateral Requirement Unsecured Lending Expensive alte
Slide 4: Validus' innovative business model incorporates key differentiators
3 Validus’ innovative business model incorporates key differentiators pioneered by leading Marketplace Lenders across global markets Providing financing for 8 – 12% net IRR p.a.* Accredited Investors (HNWIs, Institutional Investors) Singapore’s largest SME Financing platform Growing SMEs (Borrowers)
Slide 5: Validus has proven experience in bridging the cashflow gap SMEs face
4 Validus has proven experience in bridging the cashflow gap SMEs face Healthy key metrics is testament to our robust business model and strong team $1.2b + > 30,000 TOTAL FUNDS DIS BUR SE D1 TOTAL FACILITIES DISB URS ED WI NNER OF MAS FINTECH AWARDS 2020 (SG FI NANCI AL I NSTI TUTI ON) $50k ~17% 90
Slide 6: SME Financing offers attractive risk-adjusted returns and diversification
5 SME Financing offers attractive risk-adjusted returns and a unique opportunity to diversify your investment portfolio High Potential 8 - 12% p.a. Diversified Asset Class Expected annualized IRR* Portfolio A new asset class for The return of this asset class The best performing portfolios short-ter
Slide 7: Invoice financing is our mainstay product for customer acquisition
7 Invoice financing is our mainstay product for customer acquisition followed by cross-sell of higher margin products to creditworthy customers Corporate Vendor Financing Purchase Order Financing Working Capital Financing Invoice Financing (AR) (CVF) (PO) (WC) Avg. 4 months tenor Avg. 3 months tenor
Slide 8: Our business model is highly data-centric, leveraging fraud and risk algorithms
8 Our business model is highly data-centric, leveraging sophisticated fraud and risk algorithms that process real-time performance data acquired directly and through partnerships Sophisticated credit model predicts the probability of default; constantly evolves as data lake expands Proprietary risk
Slide 9: Our differentiated, partnership led strategy now has a solid foundation
9 Our differentiated, partnership led strategy now has a solid foundation, and we aim to enhance and replicate this across all countries Astute shareholders provide strategic Marquee guidance and access to key partners and Shareholders local corporates to drive the anchor-led customer acquisition st
Slide 10: With one of the strongest fintech teams in the region
10 With one of the strongest fintech teams in the region, we have built deep expertise around local credit cycles, SME lending, and the intersection of financial services and technology Vikas Nahata Nikhilesh Goel Ajit Raikar Co-founder & Executive Chairman Co-founder & Group CEO Co-Founder & Adviso
Slide 11: SME Financing Outlook
SME Financing Outlook • Huge addressable need: US$5.2 trillion global financing gap for MSMEs, of which East Asia and Pacific countries form the largest share of this gap • SME private credit in Asia is set to grow as Southeast Asia undergoes tremendous growth and development • Recovery post- Covid-
Slide 12: Questions? Validus Investor Relations
Q UES TIO NS? Validus Investor Relations ir@validus.sg w w w . v a l i d u s .s g 12 CO NFI DENTIAL – DO NOT DI ST R IB UT E
Slide 13: Disclaimer
Disclaimer This publication shall not be shown, re-transmitted, re-distributed, disclosed or copied, or relied upon, in whole or in part, by any person for whatever purpose without the prior consent of Validus Capital Pte. Ltd. (“Validus”). Distribution of this publication or information within to a