Daung Capital, a Yangon-based financing platform, has raised capital for an ongoing Series A financing round, according to its founder.
Daung Capital extends credit for the purchase of products like motor vehicles or electronics through a rent-to-own model. Targeting the working class, the company also provides advanced credit to salaried workers and education loan to workers.
Financial terms of the round remain undisclosed. However, one investor betting on Daung Capital is Mike Than Tun Win, an early-stage tech investor who owns Flymya.com, a travel booking platform and has a majority stake in Get Ride, a homegrown ride-hailing platform.
Daung Capital founder Leon Qiu claims that the company has so far financed about 2,900 motorbikes with 3,500 active borrowers present across its platform.
Daung Capital’s leadership team includes CEO Wang Yi En, strategy head Richard Ng Tiong Beng and finance lead Tee Choon Kiong.
Rent 2 Own (Myanmar) Ltd, a motorcycle rental service provider, operates in a similar space and is backed by Germany’s DEG and agRIF, an impact focused fund managed by Incofin Investment Management.
In Myanmar, a 53-million population country, only 5 per cent have a bank account and about 70 per cent are financially excluded or informally served, according to the Myanmar Microfinance Association.
With the microfinance law being enacted only in 2011, the country still has a long way to go, in terms of financial inclusion.
The country has over 200 licensed microfinance institutions and, international firms like Alliance Microfinance in Myanmar Ltd, Vision fund Myanmar, Proximity Designs and Pact Global Microfinance Fund are leading the pack.