ShopUp, the largest full-stack B2B commerce platform in Bangladesh, announced that it secured $30 million in debt financing, another major milestone in the country’s startup ecosystem.
The $30-million financing round was comprised of $20 million from Lendable, the global provider of debt to fintech companies in emerging markets, marking their first investment in South Asia.
Additionally, ShopUp secured BDT equivalent of $10 million in debt financing from The City Bank, a major commercial bank in Bangladesh, a first for a local startup.
The funds will be used to drive expansion efforts and strengthen the company’s supply chain operations, benefiting small businesses and consumers across the country.
“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.
Bangladesh‘s retail market is highly fragmented, with 4.5 million small shops accounting for 98% of total consumption in the country. These small, scattered shops are responsible for distributing food and household items across the country.
Still, they face issues such as product unavailability, unreliable delivery, and lack of access to affordable financing.
With over $200 million in investments from global investors already raised, the recent debt financing of $30 million will enable ShopUp to further its efforts in building critical supply chain infrastructure, partnering closely with mills and manufacturers, and expanding its financial services products to support underserved SMEs in the food value chain.
The funds will also help address the significant food waste issue in Bangladesh, with over 30% of production going to waste, by implementing a seamless distribution system that reaches 50% of the population, ensuring food security for all.
ShopUp’s commerce platform Mokam partners with manufacturers, brands, and mills to streamline the distribution of food and household necessities to small shops.
Currently, 20 million people in Bangladesh access food and essentials through Mokam’s network of shops. The company operates the largest last-mile logistics network in Bangladesh, REDX, and is committed to addressing gaps in the country’s food supply chain infrastructure.