Bangkok-based PeerPower, a digital financing platform connecting business owners and investors, announced today it has received an undisclosed sum in pre-Series A round from InVent, the venture capital arm of Intouch Holdings.
Joining this round is existing investor Business Online Public Company (BOL).
PeerPower will use the funds to invest in product development and broadening its digital financing services.
The fintech startup claims it is the first in Thailand to issue Crowdfunding Bonds, approved by the Securities and Exchange Commission Thailand (SEC).
PeerPower leverages technology to provide better returns to investors. Investors can open an online account and choose to invest in businesses based on individual risk appetite. Its crowdfunding platform utilises data to maximise risk for investors and makes it easy for them to quickly build a portfolio of crowdfunding bonds, diversify risk, and earn steady cash flows, it claims.
Also Read: InVent makes 1st US investment in VR advertising startup Social Nation
For business owners, issuing crowdfunding bonds signals the readiness to engage with savvy investors. Facilitated by PeerPower, crowdfunding bond issuers provide quarterly financial updates to investors.
“In 2019, SMEs contribute 43 per cent of Thai GDP and drive 85 per cent of Thai employment (Office of Small and Medium Enterprises Promotion). However, one of the challenges facing SMEs today is timely access to financing. InVent sees an opportunity to solve the financing gap for SMEs through the use of technology and product innovation, empowering business owners to strengthen their capabilities and grow their business,” said Dr.Narongpon Boonsongpaisan, Head of InVent.
With its Crowdfunding Bonds, Boonsongpaisan said that PeerPower has brought a viable asset class for investors to invest in.
“Last year, 2.3 trillion Thai baht of unrated bonds were issued in Thailand (Thai Bond Market Association), which presents a significant opportunity for SMEs. In the past, bonds used to be accessible only by large companies, now SMEs can issue crowdfunding bonds through PeerPower,” said Vorapon Ponvanit, Founder and CEO of PeerPower.
PeerPower said that crowdfunding bond issuers on the platform so far has included businesses from media to food production, software house and a rock climbing gym. Eligible businesses can raise funds through PeerPower’s crowdfunding platform with interest rates ranging from 6 to 22 per cent depending on their PeerPower assessed credit grade.
PeerPower said it will continue to enable financing access to business owners including high-growth companies and mid-cap companies.
–
Picture Credit: PeerPower
The post Thailand’s ‘crowdfunding bonds’ startup PeerPower raises pre-Series A funding from InVent, BOL appeared first on e27.