OR to invest in startups in Southeast Asia
Strategy will help fuel new businesses
PTT Oil and Retail Business Plc (OR) is planning to invest in startups in Southeast Asia, to fuel its new businesses, especially in the area of mobility and lifestyles, under a venture capital fund it recently co-established.
OR, which will invest via its whollyowned PTTOR International Holdings (Singapore), has teamed up with 500 Tuks Tuks, the local operating unit of US venture capital firm 500 Startups, to set up the fund named “Orzon Ventures”.
The fund will support investments in the most promising startups in Thailand and Southeast Asia to seek opportunities to create new rapidly growing businesses.
Startups in both Series A and B will receive financial support.
PTTOR International Holdings will initially invest US$25 million in the fund, with an option to increase it to $50 million in the future.
OR has set a long-term business direction to seek opportunities in mobility and lifestyle businesses.
Jiraphon Kawswat, president and chief executive of OR, expects the fund will support 1-2 startups by the end of this year.
Startup development is part of OR’s capital spending worth 74-75 billion baht over five years through 2025.
The company plans to allocate 15% of the capital expenditure for new nonoil businesses.
OR is increasingly focusing on nonoil businesses. In February, it bought a 20% share in Pluk Phak Praw Rak Mae Co, worth more than 400 million baht. This company operates Ohkajhu organic restaurants and currently has 14 branches countrywide.
In October last year, the company purchased a 10% share, worth 900 million baht, in Flash Express Co, which provides express delivery services. This startup will synergise with 2,000 PTT stations and 3,200 Cafe Amazon outlets nationwide.
Krating Poonpol, 500 Tuks Tuks’ partner, said he will apply his experience in dealing with 80 startups over a period of almost 6 years to Orzon Ventures.
He said many startups are dealing with challenges, including a lack of manpower, insufficient funds and inadequate marketing strategies.
“Orzon Ventures can help fulfil and support startups,” said Mr Krating.
The help will ensure that they will have sufficient resources to successfully develop their businesses and enjoy a rapid growth, he said.
Mr Krating believes Southeast Asia is now in a “golden age” of economic development, giving business opportunities to startups.
Orzon Ventures will fulfil the vision and mission of 500 Tuks Tuks founders to make startups globally recognised, he said.