Thai fintech group SCB X sells Robinhood app for B2bn
SCB X Plc, a leading Thai financial technology group, has sold Purple Ventures Co Ltd, the provider of the Robinhood application, to a group of investors led by Yip In Tsoi Group.
The total transaction value is up to 2 billion baht, consisting of an initial payment of 400 million baht and an additional performance-based payment of up to 1.6 billion baht, according to an SCB X statement.
This transaction is intended to ensure Robinhood remains a competitive and sustainable food delivery platform developed by Thais for Thais.
Arthid Nanthawithaya, chief executive of SCB X, said Robinhood was launched with a strong mission to provide a Thai food delivery platform to help merchants with their businesses while offering consumers an alternative, especially during the Covid-19 pandemic.
When it was time for SCBX Group to decide to hand over the Robinhood business to the next group of investors, one of the key criteria was that the buyer must be a Thai business group devoted to developing Robinhood into a sustainable platform for Thais. The investor group led by Yip In Tsoi Group is described as robust and experienced in comprehensive technology solutions, and has pledged to maintain Robinhood’s presence in Thai society for the benefit of all stakeholders, including consumers, merchants and delivery riders.
“As the leader of the investor group in acquiring Robinhood from SCBX, we see the potential in Robinhood’s food delivery service, which has a solid customer base, quality service, and polite and fast delivery riders. Additionally, the variety of merchants available on the platform, including well-known and unique establishments, makes it an excellent opportunity for the Yip In Tsoi investor group to further develop the business, enhance Robinhood’s competitiveness, and foster inclusive growth within the ecosystem. Robinhood will continue to connect people with merchants and the economy of the country,” said Morakot Yip In Tsoi, chief executive of Yip In Tsoi Co Ltd.
Customers can continue to use the Robinhood application without disruption, maintaining the premium standards of service, courtesy, and efficiency to ensure an optimal experience.
According to a separate SCB X filing to the Stock Exchange of Thailand on Sept 30, the company has signed the share sale and purchase agreement with a group of investors led by Yip In Tsoi to sell all the shares held by the company in Purple Ventures.
The investor group comprises Yip In Tsoi Group, with 50% of Purple Ventures’ total paid up ordinary shares, the Brooker Group Public Co Ltd with 30% of Purple Ventures’ total paid up ordinary shares, SCT Rental Car Co Ltd and Loxbit Public Co Ltd, each with 10% of Purple Ventures’ total paid up ordinary shares.
SCB X is the financial technology group and holding company of Siam Commercial Bank. In July this year SCB X announced it would postpone the cessation of Robinhood food delivery services, which was originally scheduled to take place on July 31.
The decision was based on the company’s ongoing consideration of acquisition proposals for the entire business from interested parties. Other services on the application — Travel, Ride, Mart and Express — ceased operations as originally scheduled on July 31.
Established in 1926, Yip In Tsoi aims to reach 15 billion baht in total revenue by its 100th anniversary. The group has nine subsidiaries with 1,900 employees, with businesses ranging from digital solutions, engineering and trading to manufacturing and insurance.
Yip In Tsoi executives earlier said the company was looking to invest in new S-curve businesses and in startups that can synergise with its existing businesses or offer potential in new S-curve segments such as electric vehicles or cybersecurity.
Purple Ventures posted accumulated losses of 5.56 billion baht as of the end of 2023, according to corporate performance service company Creden Data.
As of January 2024, Robinhood had over 400,000 restaurants, 4.3 million customers and 40,000 combined food and ride-hailing providers in its database.
K-Research expects the value of Thailand’s food delivery market in 2024 to decline by 1% to 86 billion baht as slowing economic recovery has made consumers much more cautious about spending.
Source – Bangkok News
