Validus, TTC Group, Do Ventures form JV to boost lending for Vietnam’s SMEs

Do Ventures General Partners Vy Le (left) and Dzung Nguyen

SME Growth Financing Platform Validus Vietnam, former VC firm Do Ventures and multi-industry conglomerate TTC Group today announced a joint venture to help local SMEs gain credit.

TTC Group has participated in JV through its group company DHA Corporation, an investor in real estate, health and sports.

The JV aims to promote financial inclusion and strengthen the growth of underserved SMEs in Vietnam. It will leverage TTC’s vast ecosystem of SMEs across Vietnam’s energy, real estate, cane sugar and hospitality industries. At the same time, Do Ventures ‘expertise in fintech will support Validus’ growth ambitions, and the JV will in future benefit from potential synergies with portfolio companies under Do Ventures.

SMEs play a key role in Vietnam’s economy. However, access to credit remains an urgent issue for SME development in the country. The SME financing gap accounts for 12% of its gross domestic product (GDP).

Also read: Validus Capital enters Vietnam; sees a share of the SME financing market of $ 21 billion

According to a World Bank study, the lack of access to finance during the COVID-19 crisis has worsened as liquidity remains a challenge during a continuous decline in demand. About 50 percent of companies have less than three months’ cash flow, and over 60 percent of companies have reported some difficulty accessing financing.

Vy Le, General Partner for Do Ventures, said: “The pandemic has accelerated the digital transformation of SMEs in Vietnam and there is a great opportunity for fintech companies to create meaningful and lasting impact through partnerships and technology. We look forward to exploit synergies to strengthen the resilience of SMEs, drive growth for SMEs and, in turn, the economy. “

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

Read also: Naver, Sea, Vertex invests in the Vietnamese VC company Do Ventures’ US $ 50M fund I

Do Ventures is a $ 50 million venture capital fund in the early stages. It seeks investment opportunities in technology startups that can develop meaningful products and services to enhance the lives of consumers in Vietnam and Southeast Asia.

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The post Validus, TTC Group, Do Ventures form JV to increase lending to Vietnam’s SMEs first appeared on e27.


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