Myanmar’s Rent 2 Own bags $6m funding from DEG, agRIF, Daiwa PI

Photo: Rent 2 Own

Rent 2 Own (Myanmar) Ltd, a motorcycle rental service, has raised $6 million in fresh funding from Germany’s development finance institution Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), and agRIF, an impact-focused fund managed by global impact asset manager Incofin Investment Management.

Daiwa PI Partners, an investment arm of Daiwa Securities Group, is also picking up a stake in Rent 2 Own by buying out an existing shareholder, the company announced on Monday.

Launched in January 2016, Rent 2 Own charges users a monthly fee, which covers maintenance and insurance, to rent a motorcycle. Users can upgrade from an old motorcycle and/or purchase the bike during the duration of the contract.

“We’ve partnered with over 400 motorcycle dealers in the country. We offer their clients a fully insured bike, as well as maintenance, against a monthly fee, and they seem to love it!” said Philippe Lenain, CEO of Rent 2 Own.

“So far the only limitation of Rent 2 Own’s growth has been our limited capacity to access funding,” he said. Lenain has experiences across Asian frontier markets (Cambodia and Vietnam) and has previously led a consumer finance company and a motorcycle hire-purchase firm in Vietnam.

Rent 2 Own expects to use the proceeds from the latest funding for its next phase of expansion.

“In the next five years, Rent 2 Own plans to serve approximately 400,000 active clients,” said a company spokesperson.

Headquartered in Yangon, it claims to have served about 70,000 clients through 34 branches across Myanmar, with coverage spanning Ayeyarwaddy Region to Shan state. It plans to open more than 150 new branches to achieve its five-year target.

Prior to the current funding round, Rent 2 Own had raised a $4 million equity investment from a pool of investors including trusts, boutique investment firms, and a number of small private seed investors.

Rent 2 Own anticipates a strong growth for Myanmar’s motorcycle market over the next few years as witnessed in Vietnam, Thailand and Indonesia in the past decades.

“We’ll be closely monitoring how the legal framework evolves, and we’re ready to move into any new space that would open,” said Tom Holland, a board member of Rent 2 Own.

The investment in Rent 2 Own is the third investment in Myanmar for Daiwa PI Partners after internet service provider Frontiir and travel company Oway.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.