T2P lays out $1m for digital lending

Financial solutions firm T2P Co is investing US$1 million (31.7 million baht) to set up a digital lending business to serve rapidly growing demand in online financial services.

The company aims to raise funds in the stock market by 2021 after expected growth and a profit in 2019 as Thailand transitions from cash to digital payments.

“By the second quarter, T2P’s subsidiary DeepSparks will have a fully operational automated lending platform powered by artificial intelligence,” said Taweechai Pureetip, chief executive of T2P Co.

The platform enables any corporation with customer data and money to offer digital lending services. DeepSparks provides a total solutions package to corporate partners to verify loans through e-Know Your Customer (e-KYC), a credit scoring algorithm and “repayment points”.

DeepSparks received nearly $1 million in pre-Series A funding from 500 TuksTuks, Chanwanich and Jay Mart in 2018.

“After f our years in operation, T2P expects to profit this year as we offer a fintech innovation platform for corporate users and banks,” Mr Taweechai said.

Previously, T2P’s core business was mainly in the consumer market through the DeepPocket e-wallet for gamers.

T2P has since expanded to offer an e-wallet engine to companies that enable brands to launch their own e-wallet to customers.

Natwut Amornvivat, co-founder of T2P Co, said corporate users, particularly enterprises like Siam Cement Group, Samsung and Kasikornbank, all demanded their own brand of e-wallets to transfer money to users, saving on operating costs, tracking money flows in real-time and allowing for flexible loyalty programmes.

The company primarily earns revenue from transaction fees.

“Corporations will offer more e-wallets, moving Thailand towards a cashless society that enables businesses to save on cash management costs and transaction fees to credit card firms,” Mr Natwut said.

T2P will soon offer e-wallets to SMEs with up to five branches. Online merchants, freelancers and users who have no credit card can use these wallets for transactions.

T2P is continuing to focus on the Myanmar market through a joint venture firm with City Mart Holdings, a supermarket conglomerate in Myanmar, Mr Natwut said.

“In Myanmar, cash transactions have few substitutes and the country has few bank branches,” he said. “Access to e-wallets will convince more people to switch from cash and enlarge the market.”

Revenue grew by five times last year to 138 million baht. Transactions through T2P’s e-wallet engine account for 3 billion baht per year, or 30 million transactions, making T2P the largest independent e-money company in Thailand.

“E-money and e-wallets are still in an exponential growth phase as overall corporate digital transformations are spurred by government policy, such as e-KYC stimulating consumer adoption,” Mr Natwut said.

In retail, e-money has accounted for 60% of transactions since 2018, while cash made up over 60% of transactions in previous years.