CP Group and SCB group jointly set up a $600-800m Venture Capital fund to invest in disruptive technology globally

Thursday 23 September 2021 08:59
Charoen Pokphand Group (CP Group) and Siam Commercial Bank Group (SCB Group) are jointly setting up $600-800m Global Disruptive Technology Venture Capital Fund, focusing on investments in the areas of blockchain, digital assets, FinTech and other emerging technology innovation. CP Group and SCB Group each bring unique value proposition, and together can create an unparalleled partnership. CP Group is Thailand's largest conglomerate with global business operations and networks, with extensive ecosystems across key industry verticals such as food, retail, telecom, health, and agriculture, offering unique market opportunities for target companies. SCB is Thailand's oldest and largest financial institution. In 2020 SCB setup SCB 10X, the digital technology investment arm that invests in disruptive technologies with global access to VC network and deals. SCB 10X has established a very strong investment track record, and is emerging as a leader in the blockchain and digital assets technology space in Asia. With this, SCB 10X will manage and operate this venture capital fund, along with CP group.

For the $600-800m fund, CP Group and SCB Group will collaborate to setup this venture capital fund with 50:50 ownership, and each will contribute $100m of capital to the fund. The rest of the capital will be contributed by external Limited Partners (LPs). CP Group and SCB 10X, will co-manage the fund, which will target early stage and growth stage startups globally.

Soopakij Chearavanont, Group Chairman of CP Group, said "Blockchain technology will change the face of multiple industries including financial services, agriculture, public sector, healthcare and manufacturing by bringing traceability, transparency, reliability and authenticity in a trustless manner. We believe we are in the early days of the promising technology and its impact to various sectors."

Arthid Nanthawithaya, CEO of Siam Commercial Bank, said "Financial services in the future will be very different from today. Blockchain-enabled financial services have the potential to broaden financial inclusion, facilitate open access, and encourage innovation. CP Group and SCB Group bring together unique value-add propositions to both startups and investors. This is great opportunity to expand SCB Group's core business through financial-related innovation."

(This fund is in the process of seeking regulatory approval.)

Source: Siam Commercial Bank