Vnet sees capital gain in retail

Vnet, which set up shop nine years ago, has so far invested in more than 10 IT companies and more than 50 per cent of the projects have been a success.

Vnet Capital founder and chairman Narong Intanate said the company now plans to focus on the development of IT solutions for the retail industry.

Information technolgy plays an important role in helping retailers manage their business and supply chains better.

Due to this, it is expected that retail solutions will provide investment opportunities for the company.

"We're now planning to invest in IT companies that develop retail-software solutions to support not just point-of-sales or back-office systems but the whole process, such as the integration of sales automation, inventory management, branch management and enterprise-resource planning," Narong said.

Apart from retail solutions, the company is also eyeing joint investments with IT retailers. Sellers of IT products are shifting their focus from corporate users to consumers, so IT retailers have to expand outlets to meet customer requirements, Narong said.

"Since outlet expansion requires investment, we're planning to join in and provide financial support to retailers," Narong said.

Vnet has expertise in IT businesses and will make investments in retail solutions, Narong said.

The combination would strengthen the company's investment plan in IT-retail businesses, he said.

The company is currently talking to a local IT retailer for joint investments and a deal is expected to be signed soon.

So far, the company has spent more than Bt200 million in venture-capital deals for more than 10 information-technolgy projects.

About 60 per cent of the deals involved IT services and software development while the remaining were with dotcom businesses.

Of the total projects, Narong said, about 30 per cent were Grade-A businesses. They are expected to fetch good returns and allow the company to expand and meet the criteria to be listed in the stock market, he said.

About 40 per cent are Grade-B businesses, which can help the company become self reliant, he said.