i-Store Self Storage joint investment with SME D Bank trust, help’s fund the expansion of their storage rental business to include 3 new facilities. This year’s income has grown to exceed 30 million baht, paving the way for a potential listing on the Stock Exchange of Thailand (SET) in 2025.
Mr. Pakdee Anivat, the companies Chief Executive Officer and Founder of Storage Ara Co., Ltd., a leading premium self-storage rental provider operating under the brand i-Store Self Storage. Mr. Pakdee has revealed that the company has received interest from both government and institutional investors and can confirm that they have received a 30 million baht investment through a venture capital trust fund. The SME Venture Fund (division 2), established by the Small and Medium Enterprise Development Bank of Thailand (SME) or also known as SME D Bank, managed by PPM Advisory Group.
The trust aims to seek investment with entrepreneurs operating small and medium sizes businesses with an S-curved business group consisting of 5 industry clusters in accordance with government policies.
After the company has received the said investment, the company plans to exponential increase growth in 2021 with revenue target no less than 30 million baht. The company is also drawing up plans to list on the Stock Exchange of Thailand (SET) as early as 2025.
Mr. Pakdee claims that the expansion meets the needs of the customers in Bangkok and other major cities across Thailand. Currently the company operates 2 branches in Bangkok’s city center. The first branch was opened in Silom, at the center of Bangkok business district with the second branch on Sukhumvit 24. The company plans to expand and open an additional 3 branches in 2021; one in the booming On Nut area in Bangkok and the other two planned for Pattaya City.
To keep up with the rapid expansion in other major cities, the company has decided to adapt their operating model to also include Storage Management. This new model will be used at their planned branches in Central Pattaya and Jomtien Beach. The company believes the business expansion model will help the company grow. It will also provide alternative investment opportunities for landlords with unused land or buildings that are looking to generate additional income without needing to manage and operate the branch themselves.
Mr Pakdee says “With the opening of i-Store Self Storage Services, we are still very selective of the locations and require it to be in the center of each city. This is especially important for our customers as they can easily travel to the facility by walking, by car or public transportation. When opening a new branch, i-Store Self Storage focus primarily on the location of each branch as it is important that our customers can easily find and access the facility either by car or public transportation.
The most important thing is to provide value for the customers who come to use the service. To do this we have to understand the customer’s requirements and to build trust by maintaining the same service standards across all of our branches. We believe that by making a good impression, it will make them feel that i-Store Self Storage is like a third home and this is important as they are entrusting us with their personal belongings.”
We notice a growing trend in the storage rental businesses indicating that storage rental is becoming increasingly popular with younger consumers that live in large cities. People living in cities such as Bangkok has seen apartment and condominium sizes continue to shrink year on year whilst rental prices stay the same or have increased. This makes it harder and harder for renters to find enough space to store their belongings at home.
Due to the coronavirus outbreak, the consumer demographics have change, with the Thai consumer increasing to 60% from the original 40%. This indicates that the Thai customers are now more familiar with the business and better understands the benefits of using Self Storage. In addition we have also noticed that consumers are also starting to value their living and looking for alternative locations for storing their belongings. Self-Storage is now one of the first things consumers look for when looking for storage rentals as it is convenient and can be accessed 24 hours a day.
At the same time, consumer behavior is changing rapidly. To keep up with the ever changing consumer requirements, the company has developed a service model that makes storing items easier and more convenient than ever. The service is called Door To Door Storage and is operated under the i-StoreGo brand. To use the service customers can contact the staff to come pick up their belongings directly from their home. When the customer wants to use the said item, they need to notify the staff and the items will be delivered back to their home. The i-StoreGo company’s slogan is STORE Anywhere REQUEST Anytime. The service is suitable for customers who are looking for convenience and do not want to waste time travelling to a storage facility. You can almost compare it to storage on your mobile and searching information from website.
Ms. Nartnaree Rattapat President of Small and Medium Enterprise Development Bank of Thailand (SME D Bank) added that the Bank has sponsored the joint investment in i-Store Self Storage as it sees an opportunity for business growth. The management team led by Mr. Pakdee Anivat, Chief Executive Officer has a very clear vision for the future of his company and how he plans to get there.