Myanmar’s first logistics and supply chain startup, Kargo, has signed an agreement with the largest commercial bank in the country, Yoma Bank, to receive a loan of approximately USD 130,000, according to online outlet Enterprise Innovation. The deal is the first of its kind in the country since the Central Bank of Myanmar approved unsecured financing.
With these funds, Kargo will ensure same-day payments for its network of 2,000 drivers and expand its customer base.
Kargo was founded in 2016, and was a member of the first cohort of Yangon’s Phandeeyar startup accelerator. At the time, Myanmar’s logistics sector was fragmented and had opaque pricing, so the company sought to connect independent truck drivers, fleet owners, third-party logistics companies, and commercial logistics providers with businesses. Kargo now maintains the largest commercial logistics fleet in the country, and has made more than 5,000 deliveries since its inception.
Previously, Kargo secured funding from Singapore-based Seed Myanmar, nabbing an undisclosed amount in a seed round in 2017. The firm also won the Startup SG Prize and was awarded USD 50,000 from the Singapore government in 2018, and was named the “Best Logistics and Supply Chain Startup” at the Echelon TOP100 competition that year. Kargo also raised a seven-figure sum from Singapore’s Cocoon Capital and a private venture capital firm in a Pre-Series A round.
Editor: Brady Ng