E-frastructure eyes B100m capital, Asean expansion

E-frastructure eyes B100m capital, Asean expansion

E-frastructure Inc, a Bangkok-based e-business holding firm, says it will begin a capital increase of 100 million baht this year.

The move is aimed at boosting its e-commerce and digital marketing footprint in Asean and acquiring businesses abroad.

Previously known as Pawoot.com, E-frastructure was founded by e-commerce pioneer Pawoot Pongvitayapanu.

He owns 80% of the company, which has registered capital of 1 million baht at present.

"We're in talks with several prospective investors and venture capital firms about the planned 100-million-baht recapitalisation," Mr Pawoot said.

After the capital increase, Mr Pawoot's shareholding stake would be diluted to 70%.

Proceeds from the capital increase will be used to expand abroad, particularly in Singapore, Malaysia, the Philippines and Indonesia.

E-frastructure, through its subsidiary Zocial Inc, has an e-business footprint in Singapore and Malaysia.

It also plans to acquire potential companies operating backend IT and application systems abroad, Mr Pawoot said.

"We expect consolidated revenue of 300 million baht this year," he said.

E-frastructure expects to list on the Market for Alternative Investment by 2019.

Mr Pawoot said Asean's retail e-commerce market size was expected to equal those in the US and Europe by 2020 thanks to the region's growing internet penetration and high population density.

"This year is likely to be a turning point for retail e-commerce and internet penetration in Asean, opening huge potential for e-commerce growth in the region," global consulting firm A.T. Kearney said.

Mr Pawoot also cited a report by ICD Research, the business information arm of Progressive Digital Media Group, that put Southeast Asia's e-commerce compound annual growth rate at 31% from 2011-15, reaching US$28 billion this year.

Thailand's e-commerce compound annual growth rate was 22% during the period, after Indonesia (42%) and the Philippines (28%).

The National Statistical Office reported Thailand's business-to-consumer online market was worth 182 billion baht in 2013.

Mr Pawoot expressed confidence in the high growth potential of Thailand's e-business market.

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