Bitkub Capital, a Thai cryptocurrency exchange firm, has secured 67 million baht ($2.1 million) in seed funding, which marks the largest seed investment round among Thai startups to date, according to co-founder and CEO Topp Jirayut Srupsrisopa.
The seed round capital will be used for the development of infrastructures and applications processes, compliance programme, automation of workflows, talent employment and acquisition of necessary licenses, he cited.
“We are now at the scaling phase. We are growing very fast despite the market correction,” he said.
To fuel its growth, Bitkub will now raise $10 million in series A round.
“Our plan is to scale domestically first. We want to use our series A round to dominate the Thai market, onboard institutional traders/investors, as well as partner with traditional financial players,” he explained.
“From my previous experience, we should not scale to other countries until we dominate our home market, and have stable systems and processes first. Once we achieved them, it makes scaling to other countries much easier.”
Bitkub Capital, founded as a holding company in 2018, was among the first three cryptocurrency exchanges that received the license from the Thai Securities and Exchange Commission in January.
“I hope the digital asset exchange license will be of limited number, just like the banking license in Thailand,” he cited.
Under its umbrella, it has four main business units, operated by different companies, comprising Bitkub Online taking care of the digital asset exchange platform; Bitkub Blockchain providing ICO advisory services; Bitkub Blockchain Academy holding education workshops in blockchain; and Bitkub Capital acting as a venture capital firm.
He believes that the competition of cryptocurrency exchanges in Thailand will get tougher but the market size will also increase in the long-run.
“In the future, everything that can be digitalised – will be digitised. Eventually, focus will shift from infrastructure to applications. Power will shift to consumers and business who can provide a great user experience. The role of the stock exchange and businesses which currently exist merely to hold assets, will be transformed,” he added.
Prior to Bitkub, Topp had co-founded coins.co.th, the largest bitcoin exchange in Thailand. Currently, he is also a Board of Director at the Thai Fintech Association.