Food2U, a food delivery service based in Yangon has secured a six-digit seed capital funding from several individual investors.
Financial terms of the deal were not disclosed, but the investment is said to place the valuation of the company at US$1.5 million.
Nay Min Thu, the founder of iMyanmarHouse.com and an investor in Food2U said that the investors – Zin Linn Aung and Ko Ko Gyi – are involved in Myanmar’s real estate business.
The capital will help the company to further upgrade its delivery platform, mainly to forge exclusive partnerships with more restaurants and for its planned expansion to Mandalay city.
At present, the startup has enrolled about 120 restaurants from Yangon, forming partnerships with companies like Pezzo Pizza, Mr. Wok, and Rangoon Tea House, to name a few.
Founded in early 2015 by Kyaw Myo Thet and Yi Mon Han, Food2U works in a similar way like other food delivery startups such as FoodPanda and Food Runner where users simply need to choose a restaurant, order their food, and enter their address for delivery.
“Users are getting more familiar with ordering food online. The intense heat of summer and the high traffic are making people become more used to the practice of ordering food online,” explained Nay Min Thu.
However, the startup also faces some competition in the Myanmar food delivery space from Burmese company YangonD2D which has raised a cash injection from the founder of BOD Technology and Flymya.com, Mike Than Tun Win in August 2016.
By Vivian Foo, VCNewsNetwork