In a first for Singapore’s digital banking sector, GXS Bank has secured regulatory approval to acquire homegrown fintech player Validus Capital, marking a significant consolidation in the local financial services landscape.

The all-cash deal, slated to close on 15 April 2025, will see Validus Capital become a wholly owned subsidiary of GXS Bank. The acquisition marks the first time a local digital bank in Singapore has bought a fintech company, signalling growing maturity and ambition among digital financial institutions.

Founded in 2015, Validus Capital is one of Singapore’s largest digital lenders to small- and medium-sized enterprises (SMEs), having disbursed over US$1 billion in supply chain and working capital financing. Its acquisition is expected to significantly bolster GXS Bank’s SME offerings.

“There are significant synergies from this acquisition,” said Muthukrishnan Ramaswami, Group Chief Executive Officer of GXS Bank. “We are leveraging our balance sheet strength, digital ecosystem, and regional network to enhance and extend Validus Capital’s digital lending solutions to more SMEs in the region.”

By integrating Validus’s financing tools, GXS Bank aims to support a broader spectrum of SMEs – from sole proprietors to mid-sized firms – across their growth journeys. Validus’s lending solutions will enable SMEs to unlock cash flow faster, helping them invest in growth without delays.

“Instead of waiting for payment for work done or goods supplied, SMEs will be able to take advantage of our supply chain finance and working capital loans, powered by Validus Capital,” Ramaswami added.

For Validus, the acquisition validates its fintech-driven lending model, particularly its “anchor-led” approach to supply chain financing across ASEAN.

“This is a testament to the strong potential of the Validus model,” said Nikhilesh Goel, Co-Founder and Group CEO of Validus Group. “We are pleased to partner with GXS Bank, which shares our passion for financial inclusion across the underserved SME segment.”

The acquisition will focus on Validus’s Singapore operations. However, Validus Group will continue its independent operations in other regional markets, including Indonesia (under the Batumbu brand) and Thailand—m – markets Goel described as “much larger and deeper.” Notably, Batumbu has been profitable for the last three years, and the group has now reached profitability at the consolidated level.

GXS Bank’s SME portfolio already includes services like the GXS Biz Account – an operating account with daily interest crediting and zero fees – and the GXS FlexiLoan Biz, an unsecured line of credit. With Validus in its fold, GXS will now add short-term trade and supply chain financing to its arsenal.

“Adding Validus Capital’s trade finance and value chain-led lending solutions into our suite of Business Banking offerings will enable us to comprehensively serve the diverse needs of micro, small- and medium-sized businesses,” said Vishal Shah, Group Head of Business Banking at GXS Bank.

The integration process is expected to complete by the end of the year. Both companies have assured stakeholders that the transition will be seamless, with all existing loans continuing to be serviced without disruption.