# Why are unicorns in Thailand still so rare?

- Link: https://www.thailand-business-news.com/startups/258876-why-are-unicorns-in-thailand-still-so-rare
- Published: 2025-11-21T07:30:32+07:00
- Author: Li Zhong

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.

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### 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.

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### 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