Bangladeshi startups raise $317m in 10yrs

Jannatul Islam

3 March, 2021 12:00 AM printer

Bangladeshi startups raise $317m in 10yrs

Bangladeshi startup companies have raised a total of $317 million in the last 10 years with 95 per cent of the funds coming from the foreign investors, according to a recent study.

Some 78 Bangladeshi companies have fetched investments through 146 funding deals of which 80 are disclosed so far till February 2021, according to research think tank Light Castle Partners.

According to the study report, some 50.58 per cent of investment came to startups in financial technology, followed by logistic and mobility (20.2 per cent), e-commerce (11.92 per cent) and consumer service (6.02 per cent).

Talking to the Daily Sun, government officials and sector insiders said the rising trend of startup businesses has made Bangladesh as a potential destination for investment.

The study report mentioned that startups in the financial technology and logistic sector are the major attraction for investors.

A startup is a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market, Investorpedia defined the business type.

Additional Secretary Syed Mujibul Haque, who looks after the iDEA project dedicated to the startup sector from the government’s side, said the government has already nominated 170 startups for collecting investment from different regions till February.

“From our side, we provide mentoring and funding support during the pre-seed stage to help their expansion to successful businesses,” he said.

The ICT Division formed a limited company titled ‘Startup Bangladesh’ with an authorized capital of Tk 5 billion to support tech-enabled businesses. The government agency has already funded 21 startups so far.

A startup is a young company founded by one or more entrepreneurs to develop a unique product or service and bring it to market, Investorpedia defined the business type.

Bangladeshi startup companies began raising investment in 2010 by raising $5 million. The investment dropped to 0.12 million in 2011 while the local companies failed to attract any significant investment in 2012. Since then, the startups in Bangladesh maintained growth in investment as local and foreign players invested $10.3 million in 2013 , $ 15.1 million in 2014, $ 19.06 million in 2015, $ 5.37 million in 2016 and $4.05 million in 2017.

Investment in the sector experienced a pick in 2018 as local startups raised $107.05 million with $90.3 million in 2019. The coronavirus pandemic has hit the investment in the startup sector as the investment in 2020 was $37.1 million and $23.7 million till February 2021.

Regarding the startup landscape in Bangladesh, researcher Bijon Islam, CEO of Light Castle Partners, said the startups in the country have maintained steady growth over the last decade. In terms of the source of funding, researchers mentioned that 58.9 per cent of the funding are foreign while 41.1 comes from local sources.

 


Top