Food2U, Myanmar’s home-grown food delivery platform, has raised a six-digit investment from Premium Distribution, a distributor in retail, food services and non-food products, according to sources familiar with the development.
Premium Distribution is known to be backed by City Mart Holdings, Myanmar’s icon in the retail industry.
It imports and distributes products including brands like Nestle, Fontana, Cadbury, Ferrero and non-food items like Classics, Lock&Lock and Luminarc.
Premium Distribution has not responded to a DEALSTREETASIA query seeking confirmation of the development at the time of publishing this article.
The investment is said to have closed in April. The post-money valuation of the startup, founded in early 2015, is said to be in the region of over $2 million.
Food2U is led by founder and managing director Kyaw Myo Thet, whose background is software engineering.
In May last year, Food2U raised a six-digit amount from individual investors comprising Zin Linn Aung, Ko Ko Gyi and iMyanmarHouse.com founder, Nay Min Thu.
Food2U, which had achieved a run rate of handling about 5000 deliveries per month last year, has expanded its services beyond Yangon to Mandalay and Taunggyi.
Food2U is also known to have forged a partnership with Pizza Hut in Myanmar, a joint venture between Pizza Hut Myanmar, City Mart Holding and Jardine Restaurant Group.
In Myanmar, Food2U competes with online food delivery service YangonDoor2Door. The market has also seen another entrant, Shwe Bite, born out of Phandeeyar Innovation Lab’s accelerator Cohort 2. Shwe Bite delivers home-cooked food, empowering women and homemakers to earn extra income.