UMG Idealab, the corporate venture capital (CVC) arm of Myanmar conglomerate UMG Group, announced today that it has invested in a Myanmar-based online grocery delivery startup Zay Chin and an Indonesian chocolate factory Moodco for an undisclosed amount.
Launched in 2018, Zay Chin is an all-in-one online grocery delivery marketplace that sells products from wet markets and supermarkets. With an ambition to become the leading grocery platform in the country, Zay Chin will use the new funds to expand in the region, upgrade its operations and technology to foster a more engaging shopping experience for the customers.
“Our decision to partner with Zay Chin will allow us, as one of the leading companies in Myanmar, to further expand our presence in the country’s growing digital business sector that will benefit its people,” Kiwi Aliwarga, UMG Idealab founder and executive chairman said in the statement.
Although UMG Idealab did not disclose the financial details, Aliwarga told KrASIA that UMG Idealab is exclusively for early-stage startups with a ticket size of USD 5,000 to USD 2 million per company.
Started first in Myanmar in late 2014 and operated in Indonesia in 2016, the venture arm has already sealed three deals this year before this investment in venture builders Widya Life Science, Foodtx, and one undisclosed firm, according to the venture arm.
Myanmar’s e-commerce sector is estimated to be worth at USD 6 million, according to Deloitte, while its retail market is estimated to be worth USD 10 to USD 12 billion, according to Consumer Goods Guide 2019 conducted by Eurocham Myanmar.
Nevertheless, with high mobile phone and internet penetration, the e-commerce sector is set to grow with the entry of international players like Alibaba-backed Daraz Group which operates a zero-commision online marketplace Shop.com.mm.
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