Myanmar startups Chate Sat, a freelancing platform and White Merak, an animated comic application, both born out of Phandeeyar Accelerator have secured six digit investment each from local and foreign investors.
The investor base of the investment round in Chate Sat, was from Singapore based Vulpes Investment Management Pte Ltd, Theta Capital and a Myanmar-based angel investor.
In May, Vulpes Investment Management Pte Ltd announced a seed investment of a six-digit figure in Chate Sat which was part of the current round. Singapore-based Vulpes has set up Vulpes Innovative Myanmar Investment Company (VIMIC Limited) to make seed and series A investments in Myanmar.
Vulpes and Theta have also committed to inject further funding for future rounds of the freelancer platform.
With over 4600 freelancers and 770 employers on its platform, Chate Sat is looking to acquire over 8,000 freelancers and 2,000 employers by end of 2017. It also plans to expand operations into Mandalay, Nay Pyi Taw, and Taunggyi.
“Local and international tech investors have been eyeing Myanmar’s tech and innovation sector. Today is proof that local tech startups can harness the connectivity revolution to accelerate business growth with support from investor communities,” said Honey Mya Win, Co-Founder and CEO of Chate Sat.
Meanwhile, White Merak’s comic reader mobile application – which features animated Myanmar comics – raised $140,000 from five local angel investors, Kyaw Tha, Managing Director of KTS Myanmar; Thar Htet, Managing Director at Zwenexsys Ltd; Htoo Myint Naung, CEO of Technomation; Kyaw Thu Aung Ba, VR & AR investor; and Mike Myat Min Han, Founder of Cars DB.
Following the investment, the investors will hold 23 per cent equity in White Merak in a deal that values the startup at $600,000 post-money.
The investment will allow White Merak to expand services to comic book lovers living outside of Yangon, Mandalay, and Naypyitaw.
White Merak has a current user base of 17,000. The investment will enable the startup to improve its application technology as well as distribution and payment systems.
“The content market in Myanmar is heating up. With international content providers coming in, local tech businesses need to make sure that they have the competitive edge. This requires a great understanding of the consumers as well as financial support from investors. Our aim is to become the no.1 entertainment platform in Myanmar,” said Aung Ye Kyaw, Founder and CEO of White Merak.
“Myanmar is undergoing a connectivity revolution. The smartphone penetration rate in Myanmar is now more than 80%. There is an unprecedented opportunity for Myanmar to do a digital leapfrog. Myanmar is the ideal market to test new tech products and strategies for those underserved by technology,” said Jes Kaliebe Petersen, CEO of Phandeeyar.
Chate Sat and White Merak are two of the four alumni from Phandeeyar Accelerator Cohort 1. Phandeeyar Accelerator is starting Cohort 2 and applications will close by the end of July 2017 to start a six-month programme in September 2017.