Exclusive: IFC to invest $3m equity in Myanmar’s ride-hailing service Oway

By Juliet Shwe Gaung

May 16, 2016

International Finance Corporation (IFC), the private lending arm of the World Bank, has proposed an equity investment of  $3 million in Oway Group, an online travel booking and on-demand ride-hailing service in Myanmar.

Oway Group, which is registered in Singapore and operates in Myanmar, counts Taft Co. Pte. Ltd., Emerging Markets Group Investments, BeeNext Capital and Qualgro Capital among its key shareholders, according to an IFC disclosure.

The company is looking to raise a total of $10 million by way of debt and equity financing to meet the working capital, operating costs and technology development of its two businesses, OwayTravel and OwayRide.

“Myanmar does not yet have a strong Venture Capital ecosystem, and lacks local and later-stage funding options. IFC’s investment in Oway provides access to capital to a promising early-stage technology company in Myanmar,” it said, in its investment disclosure.

The Oway Group is founded by Nay Aung, a Myanmar national, with previous experience at Google and Blue Lithium. He is a graduate of Stanford GSB and London School of Economics.

Some of the booking services that the platform handles include flights, bus ticketing, hotel and tour packages, car rentals and tour guides.

The company forayed into the fast-growing ride-hailing service with OwayRide March 2016. OwayRide, which has already signed on 400 drivers in Yangon, is expected to take this number to 1,500 by the year end. “Companies like Oway create economic opportunity through local job generation,” IFC said, in this filing, highlighting the development impact of job creation in an under-served emerging market.

IFC has been active in debt and equity investments in Myanmar. Just recently, IFC announced an investment of up to $7.5 million in a development fund to support SMEs in Cambodia, Laos and Myanmar. It also proposed to extend a debt investment of $21 million to half a dozen Microfinance institutions in Myanmar.

Also Read:

IFC to invest $7.5m in PE fund investing in Cambodia-Laos-Myanmar belt

Exclusive: IFC to extend $21m debt to half a dozen MFIs in Myanmar

IFC to extend $200m financing for Myanmar Industrial Port modernisation

 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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