Food2U, a Yangon-based food delivery service, has received six-digit seed capital from individual investors to aid its expansion plans.
Individuals who made the investment are involved in the real estate business in Myanmar, said Nay Min Thu, founder of iMyanmarHouse.com, one of the investors in Food2U.
With the latest investment, the food delivery service now has three individual investors — Zin Linn Aung, Ko Ko Gyi and Nay Min Thu — apart from owners Kyaw Myo Thet and Yi Mon Han.
The investment values the company at $1.5 million, said Thu during an interaction with DEALSTREETASIA.
The financing will help the company further upgrade its delivery platform, mainly to forge exclusive partnerships with more restaurants and for its planned expansion to Mandalay this year, followed by Nay Pyi Taw, said Thu.
With a focus on local consumers, the startup, founded in early 2015, has enrolled about 120 restaurants from Yangon.
It competes with Yangon Door2Door, founded by Shady Ramadan, which has earlier received fund infusion from BOD Technology.
“We see a majority of our delivery orders from locals compared to foreigners. We have also made our platform available for searches in both Myanmar and English language,” said Thu.
Kyaw Myo Thet, who trained as a software engineer, is the managing director of Food2U.
His friend, Yi Mon Han, joined as a director at Food2U. Today, the company does about 5,000 deliveries per month, up from about 1,500 when it started.
To date, Thet holds a majority share in Food2U, followed by Nay Min Thu and Yi Mon Han.
“Users are getting more familiar with ordering food online. The intense heat in summer and the high traffic are making people become more used to the practice of ordering food online,” said Thu.
With annual revenues expected to be about $700,000 for this financial year (including the cost of food and delivery charges), Food2U is hoping the numbers will soar the following year as it expands to new locations.