The Myanmar round of the worldwide start up competition ‘Seedstars World’ has been won by Yangon-based logistics startup Kargo.
The team is now scheduled to go to Switzerland to take part in the boot camp organised by the competition. And, to make it more exciting, they’re in with a real chance of winning up to $1million investment at the yearly Seedstars summit.
Golden opportunity for start up
George Oliver is co-owner of Kargo. He said: “Winning Seedstars Yangon gives us unparalleled access to the Seedstar network of investors, as well as the opportunity to win $500k of Seedstar’s own fund. But it’s also terrific exposure, both through media and across the local and regional start-up scene.”
Kargo’s top priority before the summit in March 2018 is to further expand its customer base and increase monthly sales from 300 to 3000.
New generation of start ups
Kargo is one of the new breed of start-ups that are springing up in major cities to tackle problems surrounding logistics, transport and technology. Kargo has been operating since last year, and aims to reduce the number of cars, trucks and other vehicles on the extremely congested roads of Yangon.
Co-founded by engineering graduate Htun Khaing Lynn, Kargo is an online truck-pooling website that gives people access to all sorts of services surrounding transport and logistics. It works by connecting customers and businesses that need to move lots of different kinds of goods around Yangon. The capital city has become incredibly congested since the import restrictions were relaxed in 2010, causing huge problems for people.
Venture capital investment
At seed stage, Kargo received a large investment from VC (venture capital) firm Vulpes Investment Management, who are based in Singapore. This formed part of the initial money the company needed, while it continued to work at raising investment. Kargo doesn’t just cover the streets of Yangon with its on-demand delivery service, it also works in Mandalay, Taunggyi, Pyaya and Lashio.
In June this year, eight Myanmar start ups competed at a pitching session for the Seedstars competition. Competing against Kargo were Greenovator (agri-mobile app), Doctor on Call (healthcare service) Agtrade (market matching platform for brokers, traders and farmers), Amyanpoh (e-commerce delivery solution), Thamadaw (pharmacy marketplace platform) Neh Thit (mobile based job platform) and Instacash (online lending platform).
This pitching stage was actually the third level of the competition which had originally seen more than 30 Myanmar based applications. The second level was a training programme in Yangon, and finally the pitch stage.
The Asian representative for Seedstars World said: “Our philosophy is that success breeds success. By seeing successful startups to pitch, have their own business and take control of their career, we hope that it encourages more students, more corporates, startups and entrepreneurs to become fully fledged businesses.”