Japanese Investors Eye Thai Tech Startups for Regional Expansion

Japanese investors are increasingly looking to support the expansion of Thai tech startups into regional markets, particularly in Southeast Asia. Bank of Ayudhya (Krungsri) executive Bunsei Okubo, who heads Japanese corporate and multinational banking at Krungsri, highlighted the appeal of Thailand's high-growth tech startups to Japanese investors. A recent event, the Japan-ASEAN Startup Business Matching Fair 2023, organized by Krungsri and its partners, aimed to provide investment opportunities and growth support for startups, drawing 160 investors from Japan and the region and featuring over 60 startups, including 18 from Thailand.

Okubo expects the event to generate at least 10 business matching deals within the next three years, including Japanese-Thai partnerships. Krungsri is prepared to offer financial support and investment through a venture-capital model to aid these businesses in their growth.

Alongside financial assistance, Krungsri and its parent company, Mitsubishi UFJ Financial Group (MUFG), will provide startups with comprehensive solutions, including technological expertise, business insights, advisory services, and networking opportunities.

Krungsri Innovate's Managing Director, Sam Tanskul, revealed that three Japanese-Thai deals have already materialized through the bank's business matching project for small and medium-sized enterprises. The company plans to increase capital for the expansion of four more local startups in the coming months. Additionally, Krungsri and MUFG are exploring investment opportunities in Vietnamese and Indonesian tech startups, especially in the fintech sector, to support Krungsri's consumer banking business in the region. Krungsri Finnovate (KFIN) is set to launch a second private equity (PE) trust fund worth 1 billion baht for institutional and high-net-worth investors in the fourth quarter of this year, focusing on early-stage Thai startups from series C to pre-series A stages.