Thailand’s PTT Oil and Retail Business (PTTOR) has set up a tech fund in partnership with US early-stage VC firm 500 Global to invest in both Thailand and Southeast Asia.
The Thai giant said in a statement that the fund, ORZON Ventures, is domiciled in Delaware, USA.
Through its Singapore-registered subsidiary, PTTOR International Holdings, the firm will commit an initial investment of $25 million into the fund. The investment value can be increased to $50 million, and PTTOR International Holdings will have a 99% stake in the fund, and the remaining 1% stake will be held by 500 Global and related individuals.
PTTOR, a backer of Thai logistics unicorn Flash Express, said the establishment of the new investment vehicle will strengthen and expand its own business.
A subsidiary of state-owned oil and gas giant PTT Pcl, the company conducted a $1.57 billion IPO earlier this year.
Now it has joined Thai conglomerates Siam Commercial Bank (SCB) and CP Group in launching VC funds. The latter two last month announced a new fund investing in digital assets and emerging technologies, and seeking to raise $600-800 million.
Meanwhile, 500 Global has been investing in Thailand through 500 TukTuks. The firm’s investments in 2021 include online marketplace Mercular and edtech Conicle 2021. Earlier deals include fintech company Finnomena, logistics startup GIZTIX, and car rental platform Drivemate, among others.
500 Global, which has rebranded from 500 Startups, has also rebranded its Southeast Asia business from 500 Durians to 500 Southeast Asia.
500 Southeast Asia recently raised $17.9 million for its third regional fund. DealStreetAsia had reported earlier that 500 Global was looking at raising $75 million for the 500 Southeast Asia III fund.
The Southeast Asian fund is now open to larger follow-on cheques of up to $5 million, as well as potential investments through special-purpose vehicles.