Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Bangkok Post
Bangkok Post
Business

Sabuy aims to capture society’s basic needs

Founded as a top-up machine operator in 2015, Sabuy Technology Plc has shifted focus to a commerce lifestyle platform provider, aiming to become an infrastructure operator in that sector regionally by next year.

Mr Chookiat says alliances and partnership are the best option for expansion.

Sabuy now boasts 58 affiliated firms.

Chookiat Rujanapornpajee, founder and chief executive of Sabuy, said the firm focuses on businesses that meet basic needs, including health, wealth, work and leisure, through both offline and online platforms.

The company’s revenue is mainly derived from transaction fees, interest payments, in-text advertising with growing consumer touchpoints, as well as sales of products and services.

The firm was established under the name Vending Corporation, dealing with automated top-up machines branded “AJ Term Sabuy”.

In 2017, it rebranded its top-up machines to “Term Sabuy Plus” with more than 40,000 kiosks nationwide. The company then expanded its business into food court system management and explored other business opportunities.

The firm changed its name to Sabuy Technology in 2019 and listed on the Market for Alternative Investment the following year.

The company switched to the Stock Exchange of Thailand (SET) in the commercial business sector in 2021.

TURNING POINT

Mr Chookiat regards Sabuy listing on the SET as a turning point because the firm has been diversifying its portfolio since that period through acquisitions.

Of the 58 affiliated firms, Sabuy holds a major stake in 15 of them.

Sabuy groups its core businesses into three categories, called seven conveniences, seven smarts and seven rising stars.

The seven conveniences that aim to make life easier for people comprise various

retail platforms (vending machines and convenience stores), parcel drop-off stores in 10,000 locations and 20,000 outlets with partners, and laundry shops.

Other conveniences are operating systems for enterprises (point of sales, food court platforms, accounting sales and channel management), payment systems, financial transfer systems and bill payments.

The seven smarts consist of smart systems for factories, offices, schools, canteens, parking lots, homes and lockers.

The seven rising stars comprise digital asset investment, innovation investment, enterprise solutions, a combination of parcel drop-off shops and other related businesses, business networks (such as electric vehicle chargers at its partners’ locations), media investment, and infrastructure investment (cloud and applications).

The company operates around 60,000 Term Sabuy Plus top-up machines, more than 6,000 vending machines, a food court management system at 250 locations, 200 drop-off shops under the Plus Express brand, and 4,000 drop-off shops under the Shipsmile brand.

“We made aggressive acquisitions in 2021 and 2022 to complement our diversified portfolio,” said Mr Chookiat.

In 2021, Sabuy secured six major investment deals aimed at enhancing business expansion and supporting its ecosystem.

These included the purchase of a 50% stake in Platt Finserve for 1.13 billion baht as Platt secured the rights to install and operate 10,000 ATMs at 7-Eleven convenience stores over the course of 10 years.

Sabuy also bought 4,600 vending machines from Forth Vending for 340 million baht and established a joint venture with Forth Smart Service Plc, the country’s largest top-up machine provider under the Boonterm brand, to promote existing businesses and explore new opportunities.

In addition, the company partnered with media and entertainment firm RS Group to support the usage of RS utility token Popcoin in Sabuy’s service ecosystem.

Sabuy also invested in Eatlab, a startup providing artificial intelligence-embedded tech for restaurant management, and Keen Profile, an advisor for human resources management.

The investments form part of its “Sabuyverse” strategy aimed at elevating the firm’s business ecosystem and supporting corporations and people in accessing services with tech-driven solutions, he said.

“All the moves are aimed at creating further growth for our entire business ecosystem in the new economy,” said Mr Chookiat.

SHARING ECONOMY

He said the global business landscape has changed crucially, driven by digital disruption, the pandemic and a new business ecosystem.

Businesses should take into account adaptation, scalable operations and partnership ecosystems for sustainable growth, said Mr Chookiat.

“To deal with the disruptions, we have to operate with full potential and ensure the lowest operating costs,” he said.

“It is vital that management and employees realise the need for adaptation.”

According to Mr Chookiat, businesses should not operate alone, instead seeking partnerships and creating a sharing economy with mutual benefits.

“Alliances and partnership is the best option as this can combine strengths, reduce operating costs, support synergy for scalability and allow sharing of resources with partners,” he said.

Mr Chookiat said this explains Sabuy’s preference to diversify its business through acquisitions and synergy with potential partners.

ASEAN INFRASTRUCTURE FIRM

Coming from a middle class family, Mr Chookiat has work experience in foreign banks — Hong Kong Bank and Standard Chartered — especially in the restructuring field.

His last job in the banking sector was as managing director of Standard Chartered in Singapore.

He admires global business leader Warren Buffett, chairman and chief executive of investment group Berkshire Hathaway, and said Jack Ma, co-founder of Chinese e-commerce giant Alibaba, is his role model.

“The combination of these two guys would be a perfect drive for business,” said Mr Chookiat.

He said Sabuy operates in a way that idealises the strength of Google, Amazon, Alibaba and Softbank.

Sabuy is in the process of investing in payment system providers in Malaysia and Indonesia, said Mr Chookiat.

The company is also forging ahead with its plan to invest in domestic industrial estates to add value to its business portfolio and create cross-sales marketing channels, he said.

“If we can acquire enough shareholding stake in big industrial estates, we can sell our existing products and services to people and businesses linked with them,” Mr Chookiat said.

The firm’s total revenue is expected to reach 5 billion baht in 2022 and 20 billion in 2023.

“We can triple our growth if we reap benefits from all affiliated companies we have invested in over the past two years,” he said.

The firm’s revenue is forecast to reach 3.2 billion baht in the first quarter and 5 billion in the second quarter, said Mr Chookiat.

“Sabuy aims to become an infrastructure company providing commerce lifestyle platforms for Asean by next year,” he said.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.