July 9th, 2020

Ever since Rent 2 Own started offering its innovative motorcycle rental service to the Myanmar market in late 2015, it has been growing rapidly. One third of all motorcycles sold by its partners now change hands with assistance from R2O. In April the company celebrated its 100,000th client. With funding from three new shareholders – German state-owned development fund KWF DEG, Incofin, and DAIWA PI partners – the prospects for further growth are looking good. 

Rent 2 Own is a rental service company operating under a commercial license, with its head office located in Yangon. It has 50 branches with regional headquarters in Thanlyin, Pyay, Magway, Monywa, Mawlamyine, Pathein, Taunggyi, Bago and Meikthila and has partnered with over 400 motorcycle dealers across the country. The service R2O offers is straightforward. Clients make a security deposit of 10% or more of value of the motorcycle and from then on pay monthly or quarterly fees. Each motorcycle is fully insured and maintenance service is included. At the end of the contract clients can either keep or return the motorcycle. In the latter case the security deposit is refunded.

“We are of course delighted that we have reached the milestone of 100,000 clients,” said Operations Manager Kai Marm Thaing. “But we like to look at the broader picture. R2O is contributing to the development of the Myanmar economy. We are creating jobs for our staff of 460 people and we are providing mobility to our clients, especially in underdeveloped rural areas. They can use their motorcycle to get to work or, in the case of small entrepreneurs, to generate income. Think of the seller from a small village, who is now able to bring his or her goods to the big market at a town 20 miles down the road.”

Rent 2 Own is able to provide the service it offers because it has brought USD 35 million in FDI into Myanmar since its registration in November 2015: USD 10 million in equity and USD 25 million in funding raised both locally and abroad of which a sizeable percentage consists of foreign loans approved by the Central Bank of Myanmar. In November 2018 three new foreign shareholders became part of the mission of bringing mobility to rural areas in Myanmar. KWF DEG, a state-owned German development fund, agRIF, a Belgian private development fund managed by Incofin, DAIWA PI Partners, the private equity arm of the largest Japanese merchant bank jointly invested USD 6 million in R2O.

In the coming years Rent 2 Own will continue to further roll-out its network of branches and to forge relationships with dealers. Kai Marm Thaing: “Growth is important if you want to build a sustainable business, but we also take our social responsibility very seriously. Last year we planted 11,000 forest trees in Kalaw and we are embarking on a 35,000 trees reforestation program this season. Our goal is to neutralize the CO2 emissions of the motorcycles we rent out. Another priority is road safety. We have given free helmets to each of our 100,000 clients. This way we hope to contribute to reducing the death toll on the Myanmar roads.”