Private equity firm injects additional $30M in Frontiir

Myanmar-based private equity fund manager Delta Capital will invest a further $30 million into local internet service provider Frontiir.

Through Delta’s Myanmar Opportunities Fund II (MOF II), this time the investment is joined with two limited partners, IFU from Denmark and Norfund from Norway. Frontiir will expand coverage beyond Yangon and Mandalay with the latest round of funding. The expansion plans to reach over 20 cities and towns by 2022.

This investment was led by British government-owned Commonwealth Development Corporation (CDC) after it announced in July its first direct equity investment in Myanmar. CDC is another limited partner of Delta Capital, and has contributed $15 million to MOF II.

Since 2016, the number of Frontiir’s subscribers has jumped from 4000 to over half a million. It also helped drive down the average broadband price per Mbps from $50 to less than $3. It is the parent company of Myanmar Net.

“Frontiir is a fantastic case of a company with strong management and a clear direction that, with our capital and support, is achieving tremendous growth,” said Delta Capital managing director Nick Powell.

Established in 2013, Delta Capital is Myanmar’s largest private equity fund manager. With assets under management of over $120 million, the fund manager has made seven investments in total so far with its Myanmar Opportunities Fund I (MOF I) and Myanmar Opportunities Fund II (MOF II).

MOF II accounts for $70 million of fund raised between the end of 2016 and April 2018. 30 percent of the fund in two separate investments has been allocated in a microfinance institution and an ICT services company.

Frontiir has previously received funding from Delta’s MOF I, a $50 million fund raised in 2013, together with other consumer good packaging and distribution companies and a domestic conglomerate and a project in the energy space.

Source: Myanmar Times

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