Myanmar’s online commerce platform Get is set to acquire Fintech Daung Capital, which focuses on offering a digital platform for education finance, cash advance distribution, and a rent-to-own option for personal and commercial automobiles.
The transaction reportedly includes all of Daung’s assets, which comprise all the firm’s business and outstanding employment contracts. The exact terms of the deal have not been shared publicly, however, the deal is expected to be finalized in the coming weeks.
In May of last year, the micro-credit firm confirmed that it had completed its Series A investment round with a valuation of around $12 million. The firm said it has acquired investments from Singapore-headquartered, early and growth-stage VC company Majuven, which joined Myanmar’s BOD Tech Ventures as a major investor in Daung Capital.
Majuven noted that Daung Capital is a “tech-focused, diversified consumer finance business and seeks to drive financial inclusion by targeting the underbanked and underserved Myanmar market.”
BOD Tech Ventures stated that Daung Capital had designed frontier-market-appropriate tech for performing credit analysis, facial recognition, and digital know-your-customer (KYC) checks, in order to significantly reduce the time needed for issuing loans.
At present, it’s not clear whether Majuven will be exiting out of its investment entirely or whether it will continue to maintain a stake in the group. Daung Capital is now set to become part of Get (Get All Myanmar) with the merged company managed under the Get brand. Leon Qui will continue to serve as chief executive. Meanwhile, Mike Than Tun Win, CEO at BOD Tech Ventures, will continue to serve as chairman of Get.
The two professionals were reportedly involved in launching Get and Daung Capital. Get is an omni-channel e-commerce platform that aims to support microentrepreneurs with the latest technology so that they can remain competitive in the rapidly evolving global economy.
Than Tun Win remarked:
“Get’s acquisition of Daung will provide a major growth opportunity for both businesses. Financial exclusion remains a key reason for income inequality in Myanmar/”
Over 75% of the country’s population is still unbanked. Debit card penetration is currently only 2%.
