Krungsri unit backs fund aimed at bolstering startups
Krungsri Finnovate, Krungsri Bank's corporate venture capital (CVC) arm, has partnered with EfraStructure to establish a groundbreaking fund aimed at bolstering startups across Thailand and ASEAN, managing director Sam Tanskul said at a media briefing on Monday.
The Finno Efra Private Equity Trust plans to invest 1.3 billion baht over the next four years, with discussions already under way with a number of ventures, including angel funds from public agencies such as the National Innovation Agency and the Digital Economy Promotion Agency.
The fund will primarily support startups in the seed to Pre-Series A stages, with a focus on sectors that drive impact and digital transformation. Around 60% of the funds will be allocated to Thai startups, with the remainder going to other ASEAN countries. The investment size will range from 8 million to 40 million baht.
Sam said this collaboration will focus on startups in digital transformation areas such as fintech, agritech, edtech, martech, lifestyle tech, e-commerce, HR tech, industrial tech, and mobility tech.
"The startup at seed to Pre-Series A stages should already have a product market fit with consistent revenue or have 10 million baht revenue per year, proving that they have the potential to scale," he said, adding that the fund expects to invest in 50 Thai and ASEAN startups over the next four years.
He then explained the rationale for the initiative.
"This fund emerges from our shared vision to strengthen startups, particularly at the early stages, where investment is critical but often lacking in Thailand," he said, with the hope that this development will help encourage the growth of Thai startups and the country ecosystem.
In a pioneering move, One Asset Management Ltd is preparing to launch a mutual fund under the Finno Efra Private Equity Trust for retail investors interested in startups.
This fund is intended to meet the needs of ultra-accredited investors (UI), with a minimum investment of 500,000 baht, and is expected to be offered through a trust. However, the fund is currently awaiting approval from the Securities and Exchange Commission.
According to Pote Harinasuta, chief executive officer of One Asset Management, the goal of this partnership is to elevate the Thai capital market by expanding the range of alternative assets.
"We're committed to introducing innovative investment products to our customers, ensuring they have access to a wider array of options and do not miss out on interesting investment opportunities," he said.
The Finno Efra Private Equity Trust is expected to hold an initial public offering (IPO) early in the fourth quarter of this year.
In addition to the fund, Krungsri Finnovate and EfraStructure intend to establish the Finno Efra Accelerator Programme.
Pawoot Pongvitayapanu, CEO and founder of EfraStructure, emphasised the importance of mentoring.
"This initiative will provide startups with access to our extensive network, experience, and expertise, ensuring a comprehensive curriculum for startup success," he said.
The accelerator programme will last four months, with 10 startups per cohort given the opportunity to secure funding and connect with a diverse range of investors.
Sam emphasised that with early-stage fund support for startups and an intensive accelerator programme, this ambitious project represents a significant step forward in cultivating the ASEAN startup ecosystem, with the potential to reshape the region's entrepreneurial landscape.
