The company wants to build partnerships with more restaurants and expand to the city of Mandalay
Food2U, a Yangon-based startup, told DealStreetAsia it has raised a six-digit funding round with the intention of using the money to facilitate expansion plans.
Nay Min Thu, the Founder of iMyanmarHouse.com and an investor in Food2U, told DealStreetAsia that the investors are people from the real estate industry.
The company use the financing to grow within Myanmar — both to forge more partnerships with restaurants as well as expand to the city of Mandalay.
The company was founded in 2015 and works like the other food delivery startups that have cropped up across Southeast Asia. It has partnerships with companies like Pezzo, Mr. Wok and Bugogi Brothers. Users simply choose a restaurant, order their food and enter their address for delivery.
The company does have some competition in the Myanmar food delivery space.
In August, 2016, the Burmese company YangonD2D raised a “cash injection” from the Founder of BOD Technology and Flymya.com, Mike Than Tun Win. While the amount of money was undisclosed, it did involve YongonD2D giving up 50 per cent equity to Than.
Thu told DealStreetAsia that the majority of the Food2U’s customers are local Burmese (although it does have an english option). According to the article, the startup completes 5,000 deliveries per month.
Product of its environment
Food2U and YangonD2D are examples of a theme in Myanmar’s tech scene. Because the industry is building itself up a practically non-existent internet infrastructure, foreign companies have avoided the country until recently.
This is changing (highlighted by Uber’s decision last week to launch in the country), but the result is that today there are a host of local companies that have grabbed business models from abroad and adapted them to Myanmar.
The food delivery battle is a good example as both companies are local, but also follow the same business model as foodpanda and Deliveroo.
Thu said that Myanmar’s hot summer weather and heavy traffic are reasons he is optimistic Food2U can find a footing in Myanmar.
Copyright: hollotix / 123RF Stock Photo
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