Total amount raised
$231.7 Million
Latest funding date
02/01/2023
Location
ShopUp has successfully raised $75 million in its latest funding round, led by Valar, marking a significant milestone in its financial journey. The company has gone through 10 funding rounds, attracting a total of 14 investors, including 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 is a technology company based in Dhaka, Bangladesh, dedicated to empowering small businesses through integrated solutions in commerce, logistics, and financing. The company operates two main products: Mokam, a B2B commerce platform, and REDX, a last-mile logistics network.
Founded to support small neighborhood shops, ShopUp connects mills and manufacturers to ensure the availability of food and essentials to millions. The company has a substantial employee base, ranging from 501 to 1000 employees, and has expanded its presence to Dammam, Dubai, and Singapore.
How Much Funding Has ShopUp Raised?
- Round Name: Angel
- Amount Raised: USD 120,000
- Date: December 2017
- Lead Investors: Not publicly disclosed
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart the company's operations and initial product development.
- Round Name: Grant
- Amount Raised: Not publicly disclosed
- Date: August 2018
- Lead Investors: Ministry of Information and Communications Technology, Bangladesh
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support technological advancements and innovation in the local market.
- Round Name: Seed
- Amount Raised: USD 1,620,000
- Date: November 2018
- Lead Investors: Omidyar Network
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's market reach and enhance its product offerings.
- Round Name: Seed
- Amount Raised: USD 1,000,000
- 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 scale operations.
- Round Name: Seed
- Amount Raised: USD 2,500,700
- Date: April 2019
- Lead Investors: Surge
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and improve service delivery.
- Round Name: Series A
- Amount Raised: USD 22,500,000
- Date: October 2020
- Lead Investors: Flourish Ventures, Peak XV Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's logistics network and enhance its B2B commerce platform.
- Round Name: Series B
- Amount Raised: USD 75,000,000
- Date: September 2021
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To scale operations and expand market presence.
- Round Name: Series B
- Amount Raised: USD 34,000,000
- Date: January 2022
- Lead Investors: Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To enhance technological capabilities and support business growth.
- Round Name: Series B
- Amount Raised: USD 65,000,000
- Date: June 2022
- Lead Investors: Valar Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further expand the company's supply chain infrastructure and market reach.
- Round Name: Debt Financing
- Amount Raised: USD 30,000,000
- Date: February 2023
- Lead Investors: Lendable
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To drive expansion efforts and strengthen supply chain operations.
Total Amount Raised: USD 233,240,700. Current Valuation: Not publicly disclosed.
Key Investors
- Lendable
- Details: Lendable is a financial technology company that provides debt financing to fintech companies in emerging markets. This investment in ShopUp marks Lendable's first investment in South Asia.
- Investment Focus Areas: Fintech companies in frontier and emerging markets, consumer and MSME credit, productive asset finance, payments and remittances, digital marketplaces.
- Notable Investments: Fintech companies across 14 countries, with a total disbursement of over $340 million.
- The City Bank
- Details: The City Bank is a major commercial bank in Bangladesh. This is their first debt financing for a local startup.
- Investment Focus Areas: Local startups in Bangladesh, commercial banking services.
- Notable Investments: Specific notable investments are not mentioned, but the bank is a major commercial bank in Bangladesh.
- Valar Ventures
- Details: Valar Ventures is a venture capital firm co-founded by Peter Thiel. The firm focuses 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.
- Omidyar Network
- Details: Omidyar Network is a philanthropic investment firm established by eBay founder Pierre Omidyar. The firm invests in both for-profit and nonprofit organizations.
- Investment Focus Areas: Education, financial inclusion, digital identity, property rights, governance and citizen engagement.
- Notable Investments: Khan Academy, Kiva, Teach For All.
What's Next for ShopUp?
ShopUp stands at the cusp of significant growth opportunities, driven by its recent $30 million debt financing. The company aims to expand its supply chain operations, strengthen partnerships with manufacturers, and enhance its distribution network for food and household necessities. With a market size that includes 4.5 million small shops and the potential to serve 80 million people in Bangladesh, the opportunities are vast.
Future fundraising appears promising, with the potential for additional debt and equity financing to support further expansion and infrastructure development. The involvement of global investors like Lendable and local institutions such as The City Bank indicates a strong interest from diverse financial sources, paving the way for future investment rounds.
However, ShopUp may face challenges in managing and scaling its supply chain operations efficiently, ensuring reliable delivery, and navigating regulatory landscapes. Competition from other B2B commerce platforms and fintech companies also poses a potential hurdle. Despite these challenges, ShopUp's strong market position and growth potential suggest a bright future ahead.
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