Japanese trading company Itochu Corporation has acquired about 5% of Bangkok-based mobile solutions provider Eko Communications for an estimated ¥200-300 million (60.8-91.3 million baht).
The investment will bring significant strategic advantages to Eko and help accelerate its global growth, Eko chief executive Korawad Chearavanont said yesterday in a release.
The ¥200-300 million figure includes some smaller amounts from Itochu's existing shareholders who exerted their right to purchase shares to maintain their percentage of shareholding.
The funds will support Eko's overseas expansion, help Itochu gain a foothold in the fast-growing Southeast Asian tech ecosystem and drive change in its operational model.
Mr Korawad said the investment will raise the total amount invested in Eko's products and people to well over US$10 million (332.4 million baht), which will accelerate the startup's growth before its planned Series B round in 2018.
Forbes named Itochu the world's largest and most profitable trading company in 2017. The firm, founded in 1858, has 113 offices in 62 countries and operates in six key areas: ICT, textiles, machinery, metals/minerals, energy/chemicals and food.
Itochu reported $44 billion in revenue in 2016.
Eko was founded in 2012 by Mr Korawad, then 17 years old. The company has raised $6.7 million in rounds led by 500 Startups and Gobi Partners.
Within the last 12 months, Eko's monthly recurring revenue has grown by 630%; its paying active users have climbed by 230%.
Mr Korawad said Thailand is still Eko's largest market, but the company expects the US, China and Britain to surpass it in the next few months.
Eko's clients include 11 corporations with a combined market value of $2 billion, as well as hundreds of other smaller companies spread across dozens of countries.
After a free period, Eko's customers pay monthly for a licence. The firm now has more than 150,000 recurring, paid user licenses.
"As a major global company, Itochu Corporation's backing will help foster Eko's international growth as we turn our focus on bigger markets," Mr Korawad said.
