Myanmar-based Rent 2 Own, which offers motorcycle rental services to promote mobility and livelihood opportunities for low-income groups, has raised $3 million in debt financing from Incofin CVSO, one of the funds under the management of Belgian impact asset manager Incofin, according to an announcement.
This comes six months after Rent 2 Own raised $6 million in funding from investors including agRIF, an impact-focused fund managed by Incofin Investment Management.
Rent 2 Own also counts Germany’s Deutsche Investitions-und Entwicklungsgesellschaft mbH (DEG) and Daiwa PI Partners among its investors.
Established in 2016, Rent 2 Own seeks to help entrepreneurs, especially farmers, to generate income and grow their businesses.
“The new funding will enable Rent 2 Own Myanmar to continue providing economic opportunities to families of the low income and rural population in Myanmar,” said Olivier Bertrand, CFO, Rent 2 Own Myanmar.
Rent 2 Own requires customers to make an upfront payment for the motorcycle rental and the rest to be paid on a payment plan with an interest charge.
The company aims to promote the rural population’s employability and improvement in the living standards through the acquisition of motorcycles.
The company claims to have set up 39 branches across eight provinces in Myanmar with nearly 100,000 clients.
“The portfolio growth shows that there is a clear market demand for motorcycles in rural Myanmar where financial exclusion is still high and infrastructure challenging. We see a good fit between Incofin CVSO mission to support at
an early stage the funding needs of dynamically-run companies and the entrepreneurial drive of R2O management.” Lionel Dieu, fund manager, Incofin IM, said in a statement.
Rent 2 Own has previously raised $4 million in equity investment from a pool of investors including trusts, boutique investment firms, and a number of small private seed investors.