Couchonomics with Arjun Scaling SME Lending Without Burning Capital
Jul 15, 2025
Nikhilesh Goel, Co-Founder & CEO of Validus, leads Southeast Asia's top SME financing platform, driving $5B+ in credit through sustainable practices. He discusses why SME lending often fails for fintechs and reveals that 90% of Validus' funding comes from banks, not VCs. Nikhilesh emphasizes the role of AI in operations, the importance of anchor-based lending models, and the benefits of building strong relationships with SMEs. He also navigates regulatory challenges across Southeast Asia, providing insights into ethical pricing and the future of SME financing.
AI Snips
Chapters
Transcript
Episode notes
Anchor-Based SME Lending Scale
- Validus scales SME lending by partnering with large corporations to finance their supply chain ecosystems.
- This approach ensures credible data, safer loans, and trusted repayment channels that banks typically lack.
Why Banks Avoid SME Lending
- Banks avoid lending to small suppliers without corporate guarantees because they require comprehensive credit analysis.
- Fintechs can intermediate by managing risk and operational scale banks struggle with.
Evolving to Anchor Model
- Validus developed its model through trial and error, moving from direct SME lending to anchor-based supply chain financing.
- They found financing transactions within supply chains reduces fraud and improves repayment reliability.