K-SME Venture Capital Company, a subsidiary of Kasikorn Bank (KBank), will be investing $1.5 million in two SMEs – Tee Entertainment Company and Zinco Living Company.
Of the total amount, 45 million baht ($1.38 million) will be invested in Tee Entertainment, representing 33.83% of the company’s registered capital of 26.6 million baht (around $818,000).
Tee Entertainmentnis an event management firm (organises events and concerts) that also offers advisory services for marketing strategies, including digital and online marketing management. It has recently diversified into hospitality and retail. The company operates two food outlets- a noodle restaurant named “Sabadsen” and a 24-hour restaurant under “T24” brand located in The Sense Pinklao project. It also produces and distributes goods under the concept of fast-moving consumer business.
About four million baht (around $123,000) will be invrsted in Zinco Living, which is a garden designer and gardening equipment supplier under the brand “DOGO”. It also imports and distributes “VIVOBAREFOOT” and “SKORA” barefoot shoes. With this investment, K-SME holds 31.01% of the company’s current registered capital of 12.9 million baht ($396,923).
Khao Kla’s managing director Patamaporn Chaiyakool said that the bank had a policy to invest no more than 50% of each company’s registered capital, for a period of three to five years.
“During that, we will let the companies operate their business independently, and we will only assist them as a financial partner. However, we adhere to our risk management principles by investing in each company with not exceeding one-third of its total capital,” she said.
So far, KBank is the only bank in Thailand that offers venture capital through K-SME Venture Capital Company. The fund is managed by Khao Kla Venture Capital Management, helps select promising SMEs for investment, while providing alternative funding to strengthen SME businesses.
Khao Kla was established in 2007 to manage funding for K-SME Venture Capital with the policy to provide SMEs with funding choices beyond loans.
The selected SMEs will receive financial facilities and advisory service on business operations from Khao Kla. About 19 SMEs have received funding with a combined value of 430 million baht ($13.2 million) from the VC