Ascend Money Secures $150M Funding at $1.5B Valuation

Ascend Money Secures $150 Million in Series C Funding

Ascend Money, a Thailand-based fintech company and the driving force behind the TrueMoney e-wallet, has announced the successful completion of a $150 million Series C funding round.

This investment has resulted in a company valuation of $1.5 billion. The round was spearheaded by Charoen Pokphand Group, a significant shareholder in Ascend Money.

Investment Details and Future Plans

Bow Wave Capital Management and existing investor Ant Group also participated in the Series C round. The capital raised will be strategically allocated to bolster the growth of the TrueMoney Wallet application.

Ascend Money intends to broaden its portfolio of digital financial services, encompassing areas such as digital lending, digital investment opportunities, and cross-border remittance solutions throughout Southeast Asia.

Expansion Across Southeast Asia

Founded in 2013, Ascend Money continues to fortify its operational presence across six key countries: Thailand, Indonesia, Vietnam, Myanmar, Cambodia, and the Philippines.

The company’s co-President, Tanyapong Thamavaranukupt, explained to TechCrunch that the adoption of TrueMoney Wallet for e-payments has experienced substantial growth since the onset of the coronavirus pandemic.

This surge is attributed to increased social distancing practices and a heightened awareness of contactless payment methods within the region.

Growth in User Base and Transaction Volume

TrueMoney’s user base in Thailand has expanded from 17 million in early 2021 to 20 million currently. Furthermore, online payment transactions have increased by over 75% during the same period, according to Thamavaranukupt.

“This growth in e-payment activity reflects evolving consumer spending patterns as Southeast Asia progresses towards a digital economy and a cashless society,” Thamavaranukupt stated.

Itai Lemberger, founder and CEO of Bow Wave Capital Management, highlighted that the pandemic has accelerated the development of the digital economy across Southeast Asia.

Financial Performance and Market Share

In 2020, Ascend Money’s total payment volume reached $14 billion across the six Southeast Asian countries, representing an 84% increase compared to 2019. Approximately 70% of this volume originated from Thailand, with the remaining 30% coming from international markets, as noted by Thamavaranukupt.

Ascend Money currently holds approximately 70% of the market share in Thailand, based on the company’s internal research.

Extensive Network and Service Offerings

To date, Ascend Money has accumulated a total of 50 million users through TrueMoney and its extensive offline network, which includes around 88,000 TrueMoney agent locations. This agent network is considered a core strength for regional expansion.

The e-wallet service also functions as a payment channel for both B2B transactions, serving large corporations and small-to-medium enterprises (SMEs), as well as individual entrepreneurs in local markets.

TrueMoney Wallet provides digital loan services to customers, including small business owners who may lack traditional credit histories, alongside its core payment services, Thamavaranukupt added.

Digitizing Agent Networks

“Beyond the e-wallet, we operate as an agent-based payment and remittance service provider. Over the past year, we have introduced TrueMoney Wallet for our agent network and facilitated the transition of our offline agents to an online platform, enhancing and digitizing their operations,” Thamavaranukupt explained.

TrueMoney agents are local entrepreneurs who partner with Ascend Money to provide services such as bill payments, mobile phone top-ups, and domestic and international remittance services.

Focus on the Underbanked

“We offer both TrueMoney Wallet and the TrueMoney Agent service in several countries outside of Thailand, primarily targeting unbanked and underbanked populations with limited access to conventional financial services,” Thamavaranukupt said.

Ascend Money’s founder and chairman, Suphachai Chearavanont, emphasized that the company provides a financial platform for those excluded from traditional financial systems, as well as for SMEs throughout the region.

He also noted that the company’s success demonstrates Thailand’s capabilities and robust ecosystem in supporting domestic fintech companies and startups in their international expansion efforts.

Serving Expatriate Communities

In the previous year, Ascend Money launched a service tailored for expatriates, such as Myanmarese and Cambodian migrant workers in Thailand, enabling them to register on TrueMoney Wallet and remit funds to their families back home, according to Thamavaranukupt.

Potential for Public Offering

Ascend Money is considering an initial public offering (IPO) following its achievement of a $1.5 billion valuation, as indicated by co-President Monsinee Nakapanant to TechCrunch, although a specific timeline has not been disclosed.