Dhaka, 20th Oct 2020: Bangladesh based digital store making platform ShopUp raises $22.5 million in a Series A round funding led by Sequoia Capital India and Flourish Ventures.
VEON Ventures, Speedinvest, and Lonsdale Capital (Singapore) also participated in the round.
The funding will use to extend its retail reach, as it deepens its partnerships with manufacturers and focuses on building tech-first infrastructure.
ShopUp offers small businesses easy access to B2B sourcing, last-mile logistics, digital credit, and business management solutions. This helps these neighborhood mom-and-pop sellers achieve more profit with less effort, allowing them to focus their efforts towards engaging with their customers and business expansion.
“COVID-19 has further underscored the need for digital transformation for the country’s smaller businesses,” said Afeef Zaman, Co-founder & CEO of ShopUp.
“ShopUp is empowering its customers through high quality and timely product sourcing, reliable deliveries and accessible financing. Sequoia India has been a strong supporter of the company since it was part of the first Surge cohort in early 2019 and it’s been exciting to see the company become a trailblazer facilitating digital transformation in Bangladesh,” said Klaus Wang, VP, Sequoia Capital (India) Singapore.
There are 4.5 million neighborhood mom-and-pop shops in Bangladesh, known locally as Mudi Dokaans, that account for 98% of the country’s retail sector. This makes Bangladesh one of the most fragmented retail markets in Asia. The majority of these small retailers face constant challenges in procuring goods from multiple distributors and wholesalers across an equally fragmented supply-chain, the company said.
Recently ShopUp opened its office in Bengaluru, India and acquired Indian e-commerce platform Voonik. Both co-founders of Voonik joining ShopUp as co-founders.