With the investment, Daiwa will take up nearly 10 per cent stake in the company.
Frontiir is founded by Wai Lin Tun and Allen Miu, co-founder and CTO of Frontiir, both holding a PhD from MIT and have authored tens of technical papers in the area of wireless networking.
The company received the Network Facilities Service (Individual) license in January 2016 for resale of wireline connectivity services, resale of terrestrial wireless connectivity services, international and domestic network transport and switching services and resale of international gateway service.
Their network has provided services to the summer Olympic games of SEA and is delivering enterprise IT solutions, services for local businesses, hotels, apartments and government agencies.
One of their businesses is Myanmar Net, a provider of business and consumer Internet services including prepaid cards for data packs and speed packs for up to 16 megabits per second. Myanmar Net covers six townships in Yangon and available at selective condo and housing in 12 townships.
Daiwa Securities Group is likely to hold the stake for about five years and recover the investment through an initial public offering or other means, the report stated.
Prior to the current investment, they have received investment from Delta Capital, a private equity firm focused in Myanmar whose average ticket size per investment is between $5 to $10 million.