Daung Capital

Daung Capital operates as a microfinance institution targeting the significant unbanked and financially underserved population in Myanmar. The company was founded in 2018 by Leon Qiu, a former private banker who left his career managing portfolios for the affluent to address income inequality in a region where he could make a substantial impact. Qiu's transition from private banking to microfinance was driven by a desire for personal growth and to help the financially excluded, moving from serving millionaires to the bottom millions.

The firm's business model is centered on providing credit to the working class, who have limited to no access to traditional banking services. Daung Capital established a B2B2C lending model, partnering with motorcycle dealers, factories, and SMEs to reach end customers rather than lending to them directly. A cornerstone of its product offering is a "rent-to-own" program for motorcycles, which are crucial assets for improving livelihood and accessing better employment opportunities in Myanmar. This model allows individuals earning around USD 300 a month to acquire a vehicle through manageable installment payments, with ownership transferred upon completion. The company also provides cash advances for salaried workers, education financing, and loans for farmers. To mitigate risk, the company uses technology for biometric verification and partners provide corporate guarantees on assets like motorcycles.

Shortly after its establishment in December 2018, Daung Capital secured a Series A funding round in 2019, achieving a valuation of S$16.5 million (US$12 million). This funding round was backed by investors including Singapore-based Majuven and Myanmar's BOD Tech Ventures. In February 2020, Daung Capital was acquired by Get All Myanmar, a digital commerce platform. This acquisition was a strategic move to integrate Daung's micro-lending services with Get's expansive network of nearly 18,000 retail agents, creating significant synergistic potential for both entities. Leon Qiu subsequently became the CEO of the merged entity, continuing his mission to empower micro-entrepreneurs.

Keywords: microfinance Myanmar, financial inclusion, rent-to-own motorcycle, consumer loans, Leon Qiu, micro-credit, SME financing, unbanked population, fintech lending, emerging markets finance, rural credit, asset financing, social impact enterprise, cash advance, education loans, Get All Myanmar, BOD Tech Ventures, Majuven, agricultural loans, credit risk management