Finno Efra will invest in Thai and Southeast Asian seed to pre-series A tech startups, supplying up to $1.2m per deal.
Krungsri Finnovate, the corporate venture capital arm of Thai banking firm Bank of Ayudhya, has launched a private equity trust in partnership with investment group EfraStructure, Bangkok Post reported yesterday.
Called Finno Efra, the initiative has THB1.3bn ($38m) under management, of which THB200m ($5.8m) came from Krungsri Finnovate.
The fund is set to operate for four years and back 50 digital transformation and impact startups from seed to pre-series A stages, providing between THB8m ($230,000) and THB40m ($1.2m) per deal.
It is designed to fill a gap in seed-stage funding. “CVC in Thailand typically focuses on the series A level and above, which contrasts with practices in other Asean (Association of Southeast Asian Nations) countries where early-stage startups are often prioritised,” Krungsri Finnovate managing director Sam Tansakul (pictured) told Bangkok Post.
“This strategy is designed to catalyse the growth of new ventures and strengthen the ecosystem’s foundation.”
Target areas include financial, education, healthcare, agriculture, mobility, marketing, human resources, travel and ecommerce technologies.
Roughly three-fifths of the capital is earmarked for domestic entrepreneurs, and the remainder will go to Southeast Asian companies, especially those based in Vietnam, Indonesia and the Philippines, where Krungsri has a presence.
Krungsri Finnovate and EfraStructure also plan to set up a four-month accelerator scheme dubbed Finno Efra Accelerator Programme to help seed-stage startups reach the pre-series A phase, through product development and commercialisation. It will select 10 startups per cohort, where entrepreneurs can build networks and access ecosystem resources.
High-net-worth retail investors can take part in Finno Efra through local investment adviser One Asset Management, with a minimum amount starting from THB500,000 ($15,000). Krungsri’s corporate clients can also invest in the fund with at least THB38m ($1.1m) per cheque.
In addition, Finno Efra is seeking to raise between THB1bn ($29.2m) and THB1.3bn ($38m) in an initial public offering later this year.
