CEBU, Philippines — Bangladesh business-to-business (B2B) commerce startup ShopUp has raised an additional $62.89 million in Series B4 funding from Valar Ventures and Flourish Ventures, according to regulatory filings seen by DealStreetAsia.
The shares are being issued at about $56 apiece, the same as the company’s Series B3 round, filings with Singapore’s Accounting and Corporate Regulatory Authority (ACRA) show.
ACRA filings only reflect equity funding received so far in a round, and the overall round could be larger or have other components such as debt.
The startup closed a $34 million Series B extension round in January this year, as first reported by DealStreetAsia, following its Series B round in September 2021. Sequoia Capital India and Flourish Ventures co-led ShopUp’s $22.5m Series A round.
Founded in Bangladesh’s capital Dhaka in 2016 by Afeef Zubaer Zaman, Siffat Sarwar and Ataur Rahim Chowdhury, ShopUp provides B2B sourcing, logistics and services to micro, small and medium enterprises through its mobile-first digital platform and last-mile logistics service RedX.
Its financial services product provides small shops with access to digital credit through partnerships with local financial institutions.
ShopUp’s B2B commerce app, Mokam, also helps mom-and-pop shops by giving them access to the nation’s largest catalog of products with 24-hour doorstep delivery — all via a single app.
Mokam has partnered with the country’s largest manufacturers, producers and distributors to ensure what it says is the best pricing for these products.
Additionally, store owners can obtain items on credit by accessing ShopUp’s “buy now, pay later” function in the app.
The startup opened an office in India after it merged with Bengaluru-based e-commerce platform Voonik in February 2020.
Bangladesh is home to one of the most fragmented retail markets in Asia, with 98% of all retail consumption done through 4.5 million small shops across the country, ShopUp said earlier.
The shops struggle daily when procuring goods from multiple suppliers, distributors and wholesalers.
In an interview with DealStreetAsia in October, Zaman said his company was operationally profitable — earning money on every transaction — because it offers multiple services to each customer.
In a September news release, the company also said that revenue grew by 13 times in the previous 12 months, while total shipments were up 11 times.
For the original story from DealStreetAsia, click here.
DealStreetAsia is a financial news site based in Singapore that focuses on private equity, venture capital and corporate investment activity in Asia, especially Southeast Asia, India and greater China. Nikkei owns a majority stake in the company.