Existing backer Myanmar-based private equity fund manager Delta Capital Myanmar (DCM) is putting in additional capital in local internet service company Frontiir along with two of its limited partners as co-investors, according to a press statement.
Frontiir is the largest internet service provider in Myanmar offering wireless broadband and fiber to home internet access to companies, households, and individuals.
The Delta Capital LPs, who invested in the round, include Denmark’s Investeringsfonden for Udviklingslande (IFU) and Norway’s Norfund.
UK-based development finance institution CDC Group, which is also an LP in Delta Capital Myanmar, had announced a $30-million direct equity investment in Frontiir in July this year.
DCM’s investment is being done through Myanmar Opportunities Fund II (MOF II).
The deal marks the fifth investment for Delta Capital Myanmar, which backed Frontiir in its 2016 funding round.
Frontiir will use the proceeds for working capital and for network expansion.
Frontiir is one of the drivers for bringing down broadband tariff in the country, which was $50 per Mbps in 2016 and less than $3 per Mbps today. The company claims to have a subscriber base of 500,000 today compared to around 4,000 in 2016.
The company has operations mainly in Yangon and Mandalay, the two largest cities in the country. It plans to expand and reach over 20 cities and towns by 2022.
DCM has over $120 million of asset under management (AUM). It provides growth capital to leading entrepreneurs and businesses active across key growth sectors of Myanmar’s frontier economy.
DCM has been operating in Myanmar since 2013 with a total of five investments from its Myanmar Opportunities Fund I and two investments from Myanmar Opportunities Fund II.