Yoma Bank provided unsecured SME loans to Kargo, a local online goods delivery service app to assist the firm’s growth

Kargo, a local online goods delivery service app, and Yoma Bank have signed an SME loan agreement where the bank will finance an initial loan of K200 million (US$130,000) to assist the firm’s growth, according to a release on Thursday.

“With Yoma Bank’s support we will be able to fuel our growth, business growth and drivers’ income, as we seek to realize our vision to provide quality trucking logistics solutions that are priced fairly for both the consumer and driver,” said Alex Wicks, founder and CEO of Kargo.

The loan is aimed at resolving the common problem among small and medium-sized enterprises (SMEs) of cash flow management especially for those which provide services to multinational firms and will be based on Kargo’s accounts receivable. It also aligns with Yoma Bank’s strategy to support the growth of Myanmar’s SMEs.

The agreement is also a first that a local bank has offered to SMEs since the Central Bank of Myanmar approved the disbursement of unsecured lending.

“Unsecured financing is solely based on the cash flow of the business and is a progressive way of supporting smaller enterprises,” said Hal Bosher, chief executive of Yoma Bank.

Kargo is an online transportation app that connects independent truck drivers, fleet owners, third-party logistics companies and commercial logistics providers directly with businesses that need reliable, trackable distribution and delivery of their goods across the country. To date, the company has connected almost 2,000 truck drivers in Myanmar.

The company was founded in 2016 by Alex Wicks using his own funding. The company then launched its business with capital from angel investors and SEED Myanmar, a Singapore-based venture capital company, in 2017.

Last year, Kargo also received a six-figure funding from GSMA and US$50,000 from the Singapore government after it won Startups SG prize and “Best Logistics and Supply Chain Startup” at the Echelon top 100 Start-up Competition.

(The Myanmar Times: https://www.mmtimes.com/news/kargo-receives-unsecured-sme-loan-yoma-bank.html )

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