Bank of Ayudhya has launched a new fund that aims to assist early-stage startups in Thailand. Krungsri Finnovate, a corporate venture capital arm under Bank of Ayudhya, is preparing to create a THB1 billion (US$29.6 million) that will be overseen by the founder of Tarad.com, Khun Pawoot Pongvitayapanu.
The presence of Khun Pawoot gives Krungsri Finnovate an additional level of experience and understanding when it comes to assisting early-stage startups in Thailand. He is a known angel investor who has previously worked with more than 30 startups in the Kingdom.
The fund is targeting startups in the pre-Series A funding stage and will have a budget of THB5 to THB65 million. And while it has set a few key areas of focus, include marketing tech, e-commerce, healthtech, biotech, big data and artificial intelligence, Krungsri Finnovate is open to potential partners.
“We are quite open but startups that we want to invest in need to have the potential to gain traction, particularly in terms of customers and ready products or even having gained revenue or profits. They need funding to scale,” Khun Pawoot told the Bangkok Post.
The fund will be accessible to institutional investors with a minimum investment of THB100 million and ultra-high-net-worth individuals through Krungsri Asset Management. According to Khun Pawoot, some discussions have been had about public agencies also investing.
Looking ahead, Krungsri Finnovate has plans to establish overseas offices to support business expansion efforts for the startups it has backed. Additionally, the fund could consider investment into other ASEAN countries under the right conditions.
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Interesting Analysis
This isn’t the first time a Thai bank has waded into startup funding as they look to bolster the country’s lagging tech ecosystem, especially when it comes to early-stage startups in Thailand. This move is encouraging, although just how much remains to be seen.
The difference between this effort and other ones is the inclusion of Tarad.com Founder Khun Pawoot Pongvitayapanu. He should be able to provide some needed insights to ensure the fund can actually help early-stage startups with potential.
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