Incofin disburses USD 3m loan to Rent2Own and promotes mobility of low income population in Myanmar
Incofin cvso disbursed a USD 3 million loan to Rent2Own in Myanmar. Rent2Own offers affordable and transparent motorbike rental services in Myanmar since 2016, and set up 39 branches in 8 provinces over the last 3 years. They serve nearly 100,000 clients with a workforce of 450 dedicated employees. With a total asset base of USD 33 million in February 2019 it has just celebrated its 3rd year anniversary.
Rent2Own mainly focuses on low income households in Myanmar. 70% of its clients earn less than USD 200 a month. The company aims to promote rural population’s employability, and living standards improvement through the acquisition of an affordable moveable asset (motorcycle). Beside this, Rent 2 Own also has a strong “green agenda”: aware of the CO2 emission of a motorcycle, R20 is implementing a reforestation program with the aim to be a carbon neutral institution.
“With our renting services, we see our young clients being able to apply for jobs in companies further away from their home, while our self-employed clients, including farmers, report being able to move more goods around, with a positive effect on their revenues. Because we are a data driven company, we are planning to track clients’ outcome data to measure our true impact. This new funding will enable Rent 2 Own Myanmar to continue providing economic opportunities to families to the low income and rural population in Myanmar” – Olivier Bertrand – CFO of Rent 2 Own Myanmar.
“We were impressed with the steady progress made by R20 since we started interacting with the company in 2016. 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. The growth was accompanied by tangible improvements made in the areas of credit risk management and social performance management measurement. 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