A financial technology start-up cofounded by the owner of Fortune magazine plans to widen the reach of its Southeast Asian remittance platform through acquisitions.
Lightnet, which describes its blockchain-based service as quicker and cheaper compared with traditional banks, may raise fresh capital to pour into purchases, said Chairman Chatchaval Jiaravanon. The company announced a $31-million funding round last week.
“Acquisitions will be the quickest way for growth in a fast-changing environment,” Chatchaval, 57, said in an interview. He’s a member of the billionaire family that controls Charoen Pokphand Group, one of the biggest Thai conglomerates. He bought Fortune magazine and its related businesses for $150 million in 2018.
Chatchaval will face intense competition in the
blockchain arena from a host of start-ups, as well as some of Asia’s largest
technology firms and traditional financial
institutions.
Bangkok-based Lightnet is initially targeting millions of underbanked migrant workers in Southeast Asia, a remittance market it estimates at $150 billion. Chatchaval said he plans to open offices in Singapore, Hong Kong and China—adding to current footprints in Thailand and Vietnam—and double staff strength to 120.
Lightnet’s financing round was led by companies including United Overseas Bank Ltd.’s venture unit and Hanwha Investment & Securities Co. Chatchaval said he wants his platform to process at least $50 billion worth of annual transactions in three years.
Bloomberg News
Image credits: Bloomberg