JV company Traveloka and SCB in Thailand "Trex Ventures" Closed

Trex Ventures, a joint venture between Siam Commercial Bank Group through SCB 10X and Traveloka, has reportedly closed operations and is in the process of liquidation. Quote from kaohoon, the announcement that was delivered on December 20, 2021, has completed the registration for its dissolution at the local Ministry of Trade's business development department in accordance with the decision of the EGMS.

In Trex Ventures, SCB holds a 51% stake, while Traveloka through Godwit Rock holds 49% of the company's paid-in capital. This first joint venture company from Traveloka is still in its infancy since it was first announced its operations in March 2021. SCB is one of the ranks investors in Traveloka.

The official statement regarding this news was also confirmed directly by Traveloka through Traveloka Head of Communications Reza Juniarshah. Quote from Deal Street Asia, he said that Traveloka and SCB recently decided that a direct partnership was the optimal structure for future relationships. Unfortunately he did not specify the purpose of the “direct partnership”.

Reza continued, Thailand is one of the important countries for Traveloka. Therefore, the company will continue to strengthen its user base and collaborate with more local partners in the country. "

“We look forward to continuing to work with our partners to expand our service portfolio to meet the lifestyle needs of consumers both in Thailand and across the region.”

At launch, the ambition to be offered is that Trex Ventures can take advantage of SCB's market-leading banking platform and Traveloka's digital capabilities to offer innovative financial products to each of its users in Thailand.

"Recognizing the potential of the tourism and hospitality industry as the key to helping drive the nation's economy both before and after the pandemic, SCB 10X welcomes the opportunity to partner with Traveloka, a world-class unicorn and leading travel and lifestyle platform with around 40 million users across the region," said SCB 10X Head of Business Development and Finance Pitiporn Phanaphat.

President of Traveloka Group Caesar Indra also said, "We believe the Thai consumer market offers many opportunities for Traveloka. With only 30% of Thai customers owning a credit card, we see a need similar to what we see in Indonesia. Leveraging our strong track record in Indonesia, we look forward to delivering customized and accessible financial solutions that empower Thais to enjoy new experiences and explore the world around them.”

BNPL Potential in Thailand

DailySocial.id Previously, I wrote down the potential if Traveloka was able to bring BNPL solution in Thailand will greatly help the economy in the country. The reason is, in Thailand and Vietnam there are still minimal BNPL players, compared to Indonesia, Malaysia, and the Philippines.

On the one hand, the challenges of startup players fintech there is looking for ways to take advantage of established financial institutions for credit scoring. Thai authorities legally prohibit startups from using credit data sharing facilities.

This hinders freelancers, entrepreneurs, employees, who have never had access to finance from banks due to inconsistent income. It is for this reason that most banks choose to offer loans to borrowers who have a good credit history or new clients who are steady income with verified bank statements.

The inhabitants of this market are controlled by commercial banks because they have a large customer database. Loan approvals are basically still based on conventional data. In other words, income data or bank statements that reflect the ability to pay customer debt.

Due to this authority, banks partner with business partners and other service providers on the platform online prominent, such as marketplace and food delivery platform online large with an extensive chain of shops and restaurants.