Myanmar’s oldest property portal on expansion mode after funding from first investor

A view of the Shwe Dagon Pagoda in Myanmar.

Myanmar’s oldest property portal Shwe Property, which lists properties for sale and rent, is hitting the accelerator pedal following a “significant” six-digit US dollar investment from investor and entrepreneur Justin Sway.

Founder Kaung Thu Win says the money he raised from Sway, who’s based in Australia, will be used to further grow Shwe Property’s position in Myanmar’s rapidly growing real estate sector.

“After almost five years of family ownership, it was important to secure the right type of trusted partnership for the future growth of Shwe Property, and we found that through Justin Sway,” notes Kaung.

Shwe Property started like most startups do: with a lean budget. Kaung developed the site using his savings, and out of his cheap rented apartment in Bedok, Singapore, where he had found a job after graduating from school in Myanmar. Kaung worked as software developer for IT firms in Singapore, but had always wanted to start his own company. He eventually took the plunge in 2011, taking a particular interest in Myanmar’s real estate sector. At the time, Myanmar’s economy just opened up following one of the most brutal dictatorships in Asia. Very few people had internet and sim cards were pricey. Kaung saw this as an enormous opportunity, and he worked tirelessly after his day job to develop a property portal.

Despite having no budget for marketing, he was able to turn Shwe Property into one of the known brands in Myanmar. He did this by leveraging his connections with a number of local journals and magazines, which helped spread the word.

In 2014, he decided to make the move back to Myanmar to run the business full time. Rapid changes began taking place in the market following the entry of two new telcos – Telenor and Ooredoo. After nine months of bootstrapping, Kaung knew it was time to ramp up the business to compete with new local and international rivals.

Finding the right investor

Kaung met with investment and advisory experts for several months, but it was a chance meeting with Sway in Yangon that made all the difference.

“We met when I was traveling through the country on the way to my other investments in Asia, and interests in Vietnam. [Shwe Property] was in a market we wanted to enter, so I saw an opportunity to invest in a good business with a strong brand and loyal following,” Sway tells Tech in Asia. “We wanted to invest in a founder that had passion and a sound business solution.”

Aside from capital, Sway says he brings his 25 years of business experience to the startup. Sway left Myanmar with his family at age four. He’s now based in Australia, where he has built a recruitment software company, and continues to seek out investment opportunities in emerging markets.

Rapid real estate growth

Myanmar’s real estate market has fast expanded in line with its phenomenal GDP growth over the last three years. Due to government reforms, Myanmar has experienced billions of dollars in new foreign investment in all sectors including mining, oil, power and manufacturing. Since the start of the year, the telecommunications and internet sector has skyrocketed from around 1.5 percent penetration to 5 percent internet penetration and 10 percent mobile penetration.

Sway says Myanmar, with a population of around 60 million people, is definitely headed towards its targeted 50-60 percent mobile and internet penetration within the next three years.