Ascend Money, a leading fintech firm under Charoen Pokphand Group, has secured investment from a subsidiary of Mitsubishi UFJ Financial Group Inc (MUFG) worth US$195 million to accelerate digital financial inclusion in Thailand, mainly in digital finance and lending to non-bank users.
Ascend Money and MUFG announced MUFG's consolidated subsidiary MUFG Bank Ltd as the lead investor, together with the Finnoventure Private Equity Trust I Fund, managed by Krungsri Finnovate Co Ltd, have made a combined investment of $195 million in Ascend Money.
This strategic investment signifies a strong commitment from both organisations to drive the growth of digital finance in Thailand.
By combining MUFG's global financial footprint with Ascend Money's deep local market knowledge and innovative digital financial solutions, the investment will help Ascend Money accelerate its plan to provide inclusive financial services for underserved consumers and SMEs, fostering equitable economic growth and financial well-being in Thailand.
Yasushi Itagaki, senior managing corporate executive, head of global commercial banking business group at MUFG, said MUFG considers the Asia-Pacific to be its second home market, and as part of its commitment to the region, it has been making strategic investments in leading digital finance players in the region.
Ascend Money is a promising fintech player in Thailand with widespread penetration in the country's consumer segment and a deep understanding of people's daily payments and financial requirements.
"With this investment, we are making a significant contribution to the ongoing development of Thailand's digital economy and financial inclusion, further underscoring MUFG's commitment to the sustainable development of the country and the broader region as a whole."
Suphachai Chearavanont, founder and chairman of the board of Ascend Money, said he was delighted to welcome MUFG's joint investment in Ascend Money alongside existing investors CP Group, Ant Group and Bow Wave Capital Management.
"This is a significant milestone for Ascend Money, which not only validates our commitment to innovation and financial inclusion in Thailand but also demonstrates a growing interest and confidence in Ascend Money's potential," said Mr Suphachai.
Ascend Money's strong growth trajectory, combined with MUFG's expertise and network, would enable them to create a more inclusive and vibrant financial ecosystem to accelerate both regional and local digital transformation, benefiting millions of people and contributing to the country's economic development, he noted.
Tanyapong Thamavaranukupt, co-president of Ascend Money, told the Bangkok Post that Ascend Money would strategically allocate the new funding to enhance and expand its existing suite of inclusive financial products and services.
This includes improving accessibility, affordability and the user experience for underserved consumers and SMEs in Thailand, he said.
"We'll also invest in technological innovation to develop new solutions that address the evolving needs of our customers," he added.
"This investment represents the powerful synergy of MUFG's global financial expertise and Ascend Money's deep-rooted local market insights. MUFG's extensive network and resources will be instrumental in accelerating our growth and expanding our reach."
Additionally, MUFG's experience in serving diverse markets would be invaluable as Ascend Money continued to innovate and develop new financial solutions, he noted.
Mr Tanyapong added that Ascend Money remains committed to and will continue its partnerships with existing partners such as banks and financial institutions.
The investment would open up new avenues for innovation, creating even greater value for the company's partners and customers, he said.
With 30 million active users in Thailand as of last year, Ascend Money serves a broad customer base through an extensive network and strategic partnerships with leading corporations, businesses and merchants in both online and offline landscapes.