
DEG, Incofin invest $6m in Myanmar's Rent2Own
German development finance institution DEG and Belgium-based impact investor Incofin Investment Management have invested $6 million in Rent2Own, a motorcycle rental firm based in Myanmar.
DEG committed the bulk of the funding round, investing $4 million, according to a statement. Daiwa PI Partners, a subsidiary of Japan’s Daiwa Securities Group, also invested in Rent2Own, acquiring a stake of undisclosed size from an existing investor.
Launched in 2016, Rent2Own aims to provide Myanmar’s rural population easy access to transportation services by leasing motorcycles through affordable contracts. The company has 34 branches in central Myanmar in addition to its head office in Yangon, with 400 employees nationwide, and also partners with more than 400 motorcycle dealers to offer leases to clients who cannot afford to buy their bikes outright.
Rent2Own has served 70,000 clients since it opened, offering full-service contracts that include maintenance and insurance. It targets renters such as small farmers who will use the motorcycles to generate income, which they can use to buy the bikes for themselves at the end of the contract; more than 90% of its customers have done so.
The company expects the motorcycle market in Myanmar to show strong growth in the coming years, as already seen in other Southeast Asian markets such as Thailand, Vietnam, and Indonesia. The investment by DEG and Incofin is intended to provide Rent2Own with long-term working capital for expansion that is difficult to obtain from domestic investors at present.
Myanmar has attracted increased investor interest in recent years as a result of rapid economic liberalization and despite human rights concerns related to the ongoing military crackdown on the Rohingya minority. Delta Capital Myanmar closed its second fund earlier this year at $70 million, while Anthem Asia is currently seeking $50 million for its first Myanmar-focused vehicle.
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