BANGKOK — SCB stock rose slightly by +1 (0.92%) at the start of October, following the announcement of selling its delivery app “Robinhood” to Yip In Tsoi Company for 2,000 million baht ($61.6 million).
On September 30, SCB X Public Company Limited (SCB) notified the Stock Exchange of Thailand that the Board of Directors’ Meeting held on August 30, 2024, approved the sale of shares in Purple Ventures Company Limited (PPV), the provider of the Robinhood application, which is a wholly-owned subsidiary of the Company.
Subsequently, on September 30, 2024, the Company signed a share sale and purchase agreement with a group of investors led by Yip In Tsoi Company Limited to sell all the shares held by the Company in PPV.
The maximum total value is 2,000 million baht, consisting of an initial payment of 400 million baht and an additional performance-based payment of up to 1,600 million baht.
Arthid Nanthawithaya, Chief Executive Officer of SCB X Public Company Limited (SCBX), a leading Thai financial technology business group, revealed that SCBX has announced the signing of a share purchase agreement to sell all shares of Purple Ventures Company Limited, the provider of the Robinhood application, to a group of investors led by Yip In Tsoi Group.
Mr. Arthid said that Robinhood started its business with the commitment to provide Thailand with a Thai-owned food delivery platform to help restaurant operators continue their businesses and offer another option for consumers since the recent COVID crisis. This transaction is under the intention to keep the Robinhood application as a food delivery platform developed by Thais for Thais that can compete and continue to operate stably and sustainably.
Morakot Yip In Tsoi, Chief Executive Officer of Yip In Tsoi Company Limited, said that Robinhood has a strong and quality customer base, with outstanding service from polite and fast riders, and a variety of available shop types. Customers can continue to use the Robinhood application as usual.
The company viewed these factors, combined with being a Thai-owned platform with a good foundation, as a great opportunity for the Yip In Tsoi investor group to develop the business to strengthen Robinhood further, improve its competitiveness, and create inclusive growth in the related ecosystem while remaining a platform that connects people with shops and the country’s economy.
“Customers can continue to use the Robinhood application without disruption, maintaining the premium standards of service, courtesy, and efficiency to ensure an optimal experience,” said Morakot.
Robinhood launched in 2020 under Purple Ventures during the COVID-19 pandemic when people had to adjust their lifestyles to use delivery services, causing similar app businesses to grow rapidly, such as Grab, LINE MAN, foodpanda, etc. SCB X announced Robinhood’s vision as “A sustainable app for small guys,” serving street food stalls, local shops, and small businesses.
However, as the COVID situation eased, the entire delivery business slowed down amid increased competition. Robinhood’s operating results over 4 years showed continuous losses totaling 5,500 million baht.
In February, Kasikorn Research Center released a market research report on Food Delivery for 2024, predicting that the volume of food orders through applications or Food Delivery is likely to decrease by approximately 3.7% from 2023. They estimate that in 2024, the Food Delivery market value will be around 86 billion baht ($2.64 billion), or a contraction of 1.0% from 2023.
On June 25, SCB X announced the termination of the Robinhood application service, effective July 31, 2024, citing that the business had passed through the COVID period. This led to criticism from many users.
Subsequently, on July 29, SCB X announced that they would postpone the app closure as they were considering purchase offers from interested parties. Eventually, negotiations with Yip In Tsoi were successful.
Yip In Tsoi has gained experience and expertise in developing information technology, certified with international standards. It was established in 1930, with its headquarters located in Amphoe Ban Tawai, Phra Nakhon province. The company has had the opportunity to engage in trade with leading international companies, expanding and diversifying its business continuously.
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