KUALA LUMPUR (March 23): Temasek-backed Singapore fintech startup Validus has entered into an agreement with Citigroup in Singapore (Citi) to acquire its CitiBusiness loan portfolio in Singapore.

In a statement on Tuesday (March 22), Validus said the move will bolster its top line revenue, customer base, and expand its growing loan book.

It added that this is the first time a fintech in Southeast Asia is acquiring an established bank’s loan portfolio and customer base.

Validus Co-founder and Executive Chairman Vikas Nahata said the opportunity to acquire the CitiBusiness loan portfolio is a complementary fit for the startup’s existing business and will enable it to rapidly expand it’s  customer base and loan book.

Validus said the acquisition of the CitiBusiness loan portfolio comes on top of several strategic moves by Validus recently, including the acquisition of KlearCard, a business payments and expense management technology platform.

The fintech said it has identified several strategic drivers for growth; in addition to strategic acquisitions and investments in technology, adding it has also been expanding its team rapidly in Southeast Asia, with its team growing by over 25% in the past 6 months with majority coming in support of new technology and neobank initiatives.

Validus said since its launch in 2015, it has disbursed over US$1 billion across more than 50,000 loans to small businesses in Singapore, Vietnam, Indonesia and Thailand.

Last April, Citi said it intended to pull out of 13 markets as part of its global restructuring plan. Singapore lenders DBS Group Holdings and United Overseas Bank subsequently moved in to scoop up the American bank's retail banking assets.