Why are unicorns in Thailand still so rare?

Thailand’s fintech sector lacks unicorns—privately held startups valued at over $1 billion—due to a combination of structural and market-specific challenges. A primary factor is the limited availability of venture capital, particularly from foreign sources.

Limited Venture Capital Access

The country has few foreign venture capital (VC) firms operating within its borders, and most VC activity is dominated by corporate venture capitalists (CVCs) affiliated with Thailand’s major banks This concentration restricts independent growth, as many fintechs are designed to support banks with targeted projects rather than scale into independent, high-growth ventures For instance, Chonladet Khemarattana, president of the Thai Fintech Association, noted that all VCs in Thailand are CVCs, and the lack of foreign VCs is due to the small size of the market and deals, which do not justify the due diligence costs.

The Power of Thailand’s Big Six Banks

The dominance of Thailand’s six largest banks—Bangkok Bank, Kasikorn, Krungthai, Siam Commercial Bank (SCB), Krungsri, and TMBThanachart—further stifles innovation. These banks control 82% of commercial bank loans and deposits, and their heavy investment in digitalization has saturated the market with similar services, reducing the value proposition for new fintech startups Virtual bank licenses, set to be issued in 2025, are expected to be awarded to consortiums led by these same big banks or entities with ties to major conglomerates, which may reinforce existing market dominance rather than foster disruption.

Few Success Stories, Many Struggles

Additionally, Thailand’s startup ecosystem faces challenges in scalability and innovation. The country’s relatively small domestic market of 70 million people limits growth potential, making regional or global expansion essential for achieving unicorn status However, many startups lack a regional or global perspective, which hinders their ability to scale Despite government initiatives, such as the National Innovation Agency’s funding programs and tax incentives, the ecosystem remains underdeveloped compared to regional peers like Singapore and Indonesia, which have produced multiple unicorns While some companies like Ascend Money, Bitkub, and LINE MAN Wongnai have achieved unicorn status in sectors such as fintech and delivery, the overall number remains low, and the broader ecosystem struggles to produce more