K-SME Venture Capital to invest in SMEs with High Growth Potential

K-SME Venture Capital Co., Ltd., is investing in two SMEs with high growth potential – being a honeycomb paper producer and a full-cycle logistics provider – with a total investment in the two of 78.2 million Baht, in their role as a financial provider helping SMEs achieve sustainable growth.

Mr. Patchara Samalapa, KASIKORNBANK Executive Vice President, has said that KASIKORNBANK established K-SME Venture Capital to invest in SMEs with such growth potential that need capital for business expansion. The company’s funding is managed by Khao Kla Venture Capital Management Co., Ltd. (Khao Kla), which selects promising SMEs for investment.  Among Khao Kla’s achievements are at least 13 SMEs that have received funding assistance to a combined value of 250 million Baht, two of which have been listed on the SET, and three others are in preparation to follow suit.

O & H Honeycomb Paper designs, produces and distributes honeycomb paper with outstanding, innovative product design and development while still being environmental-friendly. The company seeks to become the leading domestic honeycomb paper producer and export, thus they are seeking funding for future expansion. K-SME Venture Capital will invest 18.2 million Baht in the company, which is equivalent to 40.99 percent of their total registered capital of 44.40 million Baht.

NCL International Logistics provides complete logistical services domestically and internationally, e.g., customs clearances, and even product sorting/packaging. The company’s primary strategy is to reduce customers’ logistic costs. Such services employing trailer trucks have become fast-growing businesses, and will continue to be ahead of the upcoming ASEAN integration in 2015 when Thailand hopes to become a logistics hub for both raw materials and finished products. K-SME Venture Capital will invest 60 million Baht in this firm, equivalent to 18.46 percent of their registered capital of 81.25 million Baht.

 

 Apart from their outstanding business operations, both firms have high growth potential and will likely be listed on stock exchange someday. Investments into these firms emphasize the K-SME Venture Capital mission to facilitate the SME financial strength for sustainable expansion.

Ms. Patamaporn Chaiyakool, Managing Director of Khao Kla Venture Capital Management Co., Ltd., added that Khao Kla was established in 2007 to manage funding for K-SME Venture Capital and help in providing SMEs with funding choices beyond loans. SMEs receiving such support are offered financial support for their intended expansion and also advice on business operations from Khao Kla’s experts.

Continuing in their mission of alternative funding sources for SMEs, K-SME Venture Capital is planning to invest in another three-to-four newly-established SMEs to help them achieve their ultimate potential. K-SME Venture Capital’s policy is to invest 10-50 percent of an SME’s registered capital into them for three-to-five years. SMEs will be free to operate unencumbered. K-SME Venture Capital observes risk management principles by investing in a single company not exceeding one-third of their total funding. Past returns on investment have been approximately 20 percent profit per annum. Interested SMEs can request for further information from Khao Kla by contacting them at: Tel. 02-6738701-4.