OOCTANE, a $55-million Cambodian venture capital fund, has made its first investment in local food delivery service Muuve, per an official announcement.
The value of the deal was not disclosed, but the VC firm said it was a “strategic investment” that will help Muuve expand to new cities in Cambodia and strengthen its current operations.
OOCTANE general partner Tapas Kuila will join the board of the startup.
Launched in 2018, Muuve claims to differentiate itself from other players in the country by crowdsourcing its delivery partners. The company currently offers more than 18,800 food items via a network of over 350 restaurant partners.
“We have been closely tracking Muuve’s progress over the past few months as well as the growth of the food delivery industry in Cambodia in general, and truly believe that their asset-light business model along with strong focus on profitable unit economics and great customer experience will continue to set them apart from the rest of the pack,” said Kuila.
OOCTANE closed its debut fund in late 2018 with a mandate to invest in Cambodia-connected technology-enabled businesses. The firm focuses on logistics, e-commerce, real estate and financial services verticals.
An associate with WorldBridge Group, one of Cambodia’s largest logistics companies, OOCTANE also advises on M&A deals for the group.
Cambodia lags other Southeast Asian countries in terms of the tech ecosystem development, but it has also seen the birth of a spate of local venture capital funds such as Smart Axiata Digital Innovation Fund, Negocia Ventures and OBOR Capital.
In March 2019, local media reports cited Cambodian Prime Minister Hun Sen that the country will set up an entrepreneurship fund with an annual capital of $5 million to spur up its digital economy.
Regional funds active in this market include Belt Road Capital Management and Emerging Markets Investment Advisers.