Rent2Own, a company that rents and sells motorbikes in Myanmar, recently borrowed USD 3 million from Incofin CVSO, a cooperative fund managed by Belgium-based Incofin Investment Management. In return for a downpayment as small as 10 percent, a driver may rent a motorbike while she pays to buy it over time. Each contract includes asset and life insurance, and the rider may return the bike to get her downpayment back at any time.
Olivier Bertrand, the Chief Financial Officer of Rent2Own, said, “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.”
Since its founding in 2016, Rent2Own has built an asset base of USD 33 million and created 450 jobs, serving a total of 100,000 clients through 39 branches in 8 provinces. Seventy percent of these clients have monthly incomes lower than USD 200.
To offset the emissions of the motorbikes it puts on the roads, Rent2Own has a “reforestation program with the aim to be a carbon neutral institution.”
Incofin is a for-profit firm that was founded in 2001 and seeks “to promote inclusive progress.” It has about 325 investments in 65 countries as of January 2019. This portfolio, valued at USD 1 billion, comprises the following funds: agRIF, BRS Microfinance Coop Fund, Fairtrade Access Fund, Fonds pour l’Inclusion Financière en République Démocratique Congo (FPM), Incofin CVSO, Invest in Visions, Rural Impulse Fund (RIF) II, Volksvermogen and a loan portfolio of vdk Bank.
Sources and Additional Resources
Rent2Own press release
http://rent2own.com.mm/en/news/rent2own-raises-usd-3m-debt-incofin-and-promotes-mobility-low-income-population-myanmar
Incofin Investment Management homepage
http://www.incofin.com
Rent2Own homepage
http://rent2own.com.mm
DEG, agRIF, Daiwa Enter $9m Equity Agreement to Support Rent2Own, a Transportation Company in Myanmar
https://www.microcapital.org/microcapital-brief-deg-agrif-daiwa-enter-equity-agreement-of-9m-to-support-myanmarese-transportation-company-rent2own/
Did you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: DPAM, Korys Buy Equity in Incofin Investment Management to Boost Impact, Including Via Climate, Gender Funds
- MICROCAPITAL BRIEF: LOLC Buys 28% Equity Stake in Unguka Bank, Provider of Microfinance in Rwanda, from Incofin
- MICROCAPITAL BRIEF: Incofin Launches Water Access Acceleration Fund (W2AF) with $39m to Invest in Africa, Asia
- MICROCAPITAL BRIEF: Incofin Places $4.3m in Equity in Varashakti Housing Finance via India Progress Fund
- MICROCAPITAL BRIEF: Agritech SuperZop Nets $2.7m in Equity from Incofin India Progress Fund to Connect More Farmers, Retailers
