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2C2P secures $8 million Series D funds injection from investors

2C2P secures $8 million Series D funds injection from investors

SUNDAY, December 18, 2016

2C2P, a leading Southeast Asian payment-services provider, has secured US$8 million (Bt286 million) in Series D funding from Asian and European investors, says its chief executive and founder Aung Kyaw Moe.

The latest funds injection brings total funding for the 13-year-old company to $18 million. 
Aung told The Nation that 2C2P had not made an official announcement on the deal and could not disclose the names of the latest investors.
“I and our management still hold more than half of the company,” he said.
Aung said 2C2P deposited the funds into the bank and would not withdraw it until it needed to expand aggressively.
“We’re nearly cash-flow neutral. This means we don’t need it [the money], except when we will grow aggressively,” he said.
The 41-year-old Myanmese tech entrepreneur, who set up his payment-service firm before the term fintech was created, said some of today’s start-ups misunderstood fund-raising from venture capitalists (VCs) as good news or success.
“It is the most expensive [way to raise money]. Money is not free, you have to give your equity in return. At 2C2P, we don’t take investment [from VCs] as the end of the game, it’s only the beginning of the game,” he said.
Nevertheless, Aung pointed out that 2C2P planned a “big push” to replicate its success in Thailand to expand across the Southeast Asia region, with many exciting projects gearing up for 2017, including expanding beyond banks and large customers to smaller clients such as small e-commerce websites and merchants. 
The Thai business currently accounts for 60-70 per cent of the firm’s turnover. Riding on robust e-commerce growth, 2C2P has doubled or nearly doubled its revenue every year since its founding in 2011 and it aims to continue doubling its top-line revenue every year until 2020, he said.
2C2P expects its annual turnover to total about Bt400 million this year, up about 80-90 per cent from 2015. 
The company focuses primarily on the e-commerce sector which has potential to grow enormously since it still accounts for less than 1 per cent of all mechanised sales in Asean, versus to 12-15 per cent in China. 
“If it grows to 2-3 per cent [in Asean], it will have a huge impact,” he said. 
The firm expects e-commerce in Thailand to grow from 1-2 per cent of all merchandise sales |at present to 5-10 per cent by 2020.
Similar to China, Asean has a huge potential to leapfrog into the online payments since 70 per cent of its population still have no credit or debit cards.
2C2P employs 185 employees including 90 in Bangkok and 40 in Myanmar. 
It has offices and subsidiaries in seven Asean countries as well as in Hong Kong, the United States, and the Netherlands. 
At present, it has 26 banks in the region as its clients, including all banks in Thailand, and every Myanmar airlines.