Behind closed doors in a ห้องประชุม, 11street Thailand was able to secure investment funding from a new entity, Chalermchai Mahagitsiri. It has been a challenging year for the South Korean e-marketplace because of the competition in the industry as well as the struggle they have in looking for local partners that will invest the company.
According to a reliable source that is close with the e-commerce industry, it has already been confirmed that the president as well as chief executive of Thoresen Thai Agencies Plc, Mr. Chalermchai, decided to form a partnership with 11street Thailand through investment.
In the recent financial report published by the Department of Business Development, 11street has now a new group of executive committee including KamolsuthDabbaransi who is KornDabbaransi the former deputy minister’s youngest son, ChalermchaiMahagitisiri and UsanaMahagitsiri.
There is no public announcement regarding the partnership and no details were revealed as well. As of this writing, there is no clear information whether the deal was a joint venture between them or if it was an acquisition.
SK Telecom was the previous owner of 11street Thailand and according to their registry their declared capital is valued at 1.49 billion baht.
Last year, the company suffered a loss worth 943 million baht while in 2016 they also lost another 184 million. The past two consecutive years have been a blow to the company thus they are looking for local investors.
11street Thailand’s chief executive, Jeon Hong-cheol, said in an interview with Bangkok Post that it is the perfect timing for conglomerates to enter the picture along with big corporations because the e-commerce platforms have been waiting for it. Missing this timing could lead to a regrettable decision later on.
Mr. Jeon added that the investment opportunity in the firm is only open until 2022. It is expected that the platforms of the top players in the industry will be able to earn as much as 32.96 billion baht from gross merchandise value.
Despite the goal of 11street Thailand to be the leading firm in the industry, finding strategic partnership has been a struggle. It took a number of discussions in ห้องประชุมbefore they are able to find one in their new investor.