Bangladesh firm ShopUp bags USD 30 million debt financing to fuel expansion and strengthen supply chain operations
The largest full-stack B2B commerce platform in Bangladesh, ShopUp, declares a significant accomplishment with the acquisition of $30 million in debt funding. The money will be used to boost the company's supply chain operations and support expansion efforts, which will help small businesses and consumers nationwide.
Lendable, a global provider of debt to fintech startups in emerging regions, contributed $20 million to the $30 million financing round, marking their first investment in South Asia. Additionally, ShopUp obtained debt financing from The City Bank, a significant commercial bank in Bangladesh, for BDT equivalent to $10 million, a first for a local firm.
Bangladesh's retail industry is incredibly fragmented, with 4.5 million small businesses accounting for 98% of all purchases made there. Food and household goods are distributed around the nation by these small, dispersed stores. However, they continue to experience problems with product availability, delivery dependability, and access to cheap financing.
With the help of manufacturers, brands, and mills, ShopUp's commerce platform Mokam streamlines the delivery of food and household essentials to small businesses. Currently, Mokam's network of stores provides food and necessities to 20 million people in Bangladesh. The business, which runs Bangladesh's largest last-mile logistics network called REDX, is dedicated to filling infrastructure gaps in the nation's food supply chain.
The recent debt financing of $30 million will allow ShopUp to continue its efforts in developing crucial supply chain infrastructure, collaborating closely with mills and manufacturers, and expanding its financial services products to support underserved SMEs in the food value chain. This comes on the heels of raising over $200 million in investments from international investors.
By developing a seamless distribution system that reaches 50% of the population, providing food security for all, the funding will also assist in addressing the major food waste issue in Bangladesh, where over 30% of production goes to waste.
“The new debt facilities will help us reach our goal of creating a seamless distribution network for food and essentials that serves 80 million people in Bangladesh,” says Afeef Zaman, CEO, and Founder of ShopUp. “Our recent success in securing financing is a reflection of our financial stability and our efforts towards having a positive impact in Bangladesh.”
“We have been impressed by the scale of business and quality of team that ShopUp has built to date and are happy to be supporting the impactful work ShopUp has been doing in providing access to goods and capital to underserved MSMEs in Bangladesh” added Hani Ibrahim, Chief Investment Officer of Lendable. “We continue to work closely with ShopUp to facilitate additional debt capital into their business as they roll out their growth plan”