Japan’s second largest securities brokerage firm establishes USD 30 million Myanmar fund

The fund will target companies in the consumer goods and services sectors.

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Japan’s second largest securities brokerage firm establishes USD 30 million Myanmar fund

Japan’s second-largest securities brokerage firm, Daiwa Securities Group has committed USD 30 million to a fund specifically targeting Myanmar.

Called the Daiwa Myanmar Growth Fund, the company did not specify that it’s looking at tech startups, but it did say in a statement that the fund will invest primarily in unlisted and fast-growing private companies operating in Myanmar. Some examples would be companies related to consumer goods and the services-related sector where strong growth will be driven by the expansion of domestic consumption and the rise of the middle class. The telecommunications and logistics sectors are also in the fund’s investment scope.

According to the Nikkei Asian Review, the investment period will be 12 years. The fund’s plan is to invest approximately USD 1 million in each promising Myanmar firm with the hope that it will grow enough to get listed.

Myanmar is a fast-growing market in the region. International investments are pouring in to capitalize on the plentiful resources,  geographical position, and government incentives to invite investments.

Daiwa first entered Myanmar in 2012 when it was chosen by the central bank of Myanmar to spearhead a USD 380 million project designed to develop an IT network for the Myanmar government. However, Daiwa only started investing its own money in Myanmar companies in 2017. So far, it has invested approximately USD 25 million in five companies including an internet service provider and an online travel service.