Total amount raised
$231.7 Millions
Latest funding date
02/01/2023
Location
ShopUp has successfully raised $75 million in a significant funding round led by Valar, marking Bangladesh's largest funding event. The platform continues to attract substantial investments, including from The City Bank and Lendable.
Keep reading to explore the intricacies of ShopUp's fundraising journey and the investors backing this innovative platform.
What Is ShopUp?
ShopUp, founded in 2016, is a full-stack B2B commerce platform based in Dhaka, Bangladesh. The company was established by Afeef Zaman, Ataur Rahim Chowdhury, and Siffat Sarwar.
ShopUp empowers small businesses by providing integrated commerce, logistics, and financing solutions. The platform connects mills and manufacturers to small neighborhood shops, facilitates last-mile logistics, and offers financial solutions to underserved communities.
With a workforce of 501-1000 employees, ShopUp continues to make a significant impact on the small business ecosystem in Bangladesh.
How Much Funding Has ShopUp Raised?
- Angel Round
- Amount Raised: $120K
- Date: December 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the business operations and develop the initial platform.
- Seed Round
- Amount Raised: $1.6M
- Date: November 2018
- Lead Investors: Omidyar Network
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the platform's capabilities and reach more small businesses.
- Seed Round
- Amount Raised: $1M
- Date: February 2019
- Lead Investors: Bill & Melinda Gates Foundation, Surge
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further develop the platform and enhance service offerings.
- Seed Round
- Amount Raised: $2.5M
- Date: April 2019
- Lead Investors: Surge
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and increase market penetration.
- Series A
- Amount Raised: $22.5M
- Date: October 2020
- Lead Investors: Flourish Ventures, Peak XV Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the logistics network and enhance financial services.
- Series B
- Amount Raised: $75M
- Date: September 2021
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale the platform and improve supply chain infrastructure.
- Series B
- Amount Raised: $34M
- Date: January 2022
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technology and expand market reach.
- Series B
- Amount Raised: $65M
- Date: June 2022
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale operations and improve service offerings.
- Debt Financing
- Amount Raised: $30M
- Date: February 2023
- Lead Investors: Lendable
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand supply chain operations and support underserved SMEs.
Total Amount Raised: $231.7M
Current Valuation: Not publicly disclosed
Key Investors
- Lendable
- Details: Lendable is a global provider of debt financing to fintech companies in emerging markets. They have offices in Nairobi, London, and Singapore.
- Investment Focus Areas: Fintech companies in emerging markets, consumer and MSME credit, productive asset finance, payments, remittances, digital marketplaces.
- Notable Investments: This investment in ShopUp marks their first in South Asia.
- The City Bank
- Details: The City Bank is a major commercial bank in Bangladesh, offering a wide range of financial services. This is their first debt financing for a local startup.
- Investment Focus Areas: General commercial banking services, supporting local startups and businesses.
- Notable Investments: This investment in ShopUp is their first notable investment in a local startup.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm co-founded by Peter Thiel. They focus on investing in transformative technology companies.
- Investment Focus Areas: Fintech, software, consumer internet.
- Notable Investments: TransferWise, Xero, N26.
- Tiger Global Management
- Details: Tiger Global Management is an investment firm that focuses on public and private companies in the global internet, software, consumer, and financial technology sectors.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Spotify.
- Flourish Ventures
- Details: Flourish Ventures is a global venture capital firm investing in entrepreneurs whose innovations advance financial health and economic opportunity.
- Investment Focus Areas: Fintech, insurtech, regtech.
- Notable Investments: Aspiration, Chime, Kin Insurance.
What's Next for ShopUp?
ShopUp's future looks promising as it leverages its recent $30 million debt financing to expand supply chain operations and strengthen partnerships with manufacturers and mills. This expansion aims to serve 80 million people in Bangladesh, addressing product unavailability and unreliable delivery issues faced by 4.5 million small shops.
With a fragmented retail market and increasing investment in fintech and e-commerce platforms, ShopUp is well-positioned for future fundraising opportunities. The company's history of successful funding rounds suggests continued interest from global investors, potentially leading to additional debt or equity financing to support its growth.
However, challenges such as managing a large and dispersed market, ensuring reliable delivery, and navigating regulatory landscapes remain. Despite these hurdles, ShopUp's strategic focus on building robust supply chain infrastructure and expanding financial services for SMEs indicates a strong growth trajectory in the B2B commerce sector in Bangladesh.
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