Germany’s development finance institution DEG ? Deutsche Investitions- und Entwicklungsgesellschaft mbH and agRIF, an impact focused fund which provides funding to financial intermediaries targeting smallholder farmers and rural population and managed by Incofin Investment Management, a global impact asset manager (www.incofin.com), two high profile impact investors specialised in promoting business initiatives in emerging markets, have jointly invested US$ 6 million in Myanmar’s mobility market leader Rent 2 Own. Daiwa PI Partners, an investment arm of a major Japanese securities firm group, is also taking a stake in the venture through fully purchasing shares from one existing shareholder.

Rent 2 Own (Myanmar) Ltd launched its unique service in January 2016: it provides rural populations of Myanmar easy access to motorcycles by offering flexible and affordable contracts. In just over 2 years, R2O has served 70,000 clients through its network of 34 branches covering an area of Central Myanmar that ranges from the Ayerwaddy delta to the mountains of Shan State. It now employs 400 staff, shared between its Yangon based head-office, and its network.

?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!? says CEO Philippe Lenain. ?So far the only limitation of Rent 2 Own?s growth has been our limited capacity to access funding.?

Olivier Bertrand, R2O?s 32 years old Belgian CFO, speaks very highly of his new shareholders: ?Myanmar?s economy offers great opportunities, and both DEG and Incofin were quick to understand our business model. But the place can be very challenging when it comes to arranging a legal deal of this kind, and they?ve been fantastic, they?ve demonstrated flexibility and creativity in overcoming all legal hurdles. And now that we also have Daiwa on board, R2O?s is ready to play in another league?.

Myanmar?s motorcycle market is promised to grow strongly over the next few years, as Vietnam, Thailand or Indonesia experienced in past decades. And so is Rent 2 Own, who already supports one third of all motorcycle sales taking place in the motorcycle shops they cover. Beyond motorcycles, the company has high ambitions. Tom Holland, CEO of Development Finance Asia (DFA), declares: ?With Rent 2 Own, we have a good platform for future developments: strong management is in place, solid financial partners join us? We?ll be closely monitoring how the legal framework evolves, and we?re ready to move into any new space that would open.?