What's Next for Bangladesh?
Bangladesh, in terms of economy is emerging as a dynamic country and for this transformational change; startups have played an important in revolutionizing the disruptive changes. The country is now home to more than 2,500 startups, with about 200 more being added each year, focusing on a wide range of industries, including financial technology (fintech), logistics and mobility, and e-commerce.
Although, Bangladesh is tapping into the power of growth mindset, yet it remains largely untapped. Nevertheless, many experts believe that Bangladesh has robust potentiality for domestic companies, a viable investment benefit for venture capitalists, and private equity players as well as a possible strategic foothold for expansion by multinationals, alone or in partnerships with local companies.
The startup landscape has attracted over $880 million in funding over the last decade, with about 90% of these investments coming from outside of the country, and has created more than 1.5 million jobs. In that time, Bangladeshi mobile financial services startup bKash became the nation’s first unicorn when SoftBank acquired a 20% stake in November 2021. Surging toward unicorn status is a wave of startups, including ShopUp, a B2B commerce platform for small businesses, online grocer ChalDal, and ridesharing firm Pathao. And the government is promoting startups through a flagship $100 million venture capital fund called Startup Bangladesh.
The combination of startup activity and expanding domestic VC streams has piqued the interest of large international VCs. According to the United Nations Conference on Trade and Development, FDI inflows to Bangladesh primarily from multinationals rose by nearly 13% in 2021 to $2.9 billion and held at around that level in 2022, even as slowing GDP gains and recession worries were being felt across the globe.
In terms of equity, Bangladeshi firms are using their positive global rankings to leverage equity capital from overseas investors and VCs. For example, bKash’s Softbank investment has been mirrored by capital influxes from Ant Group, the Bill & Melinda Gates Foundation, and the World Bank’s International Finance Corporation. And in some cases, positive standing among international companies has led to technology contributions for Bangladesh firms from overseas outfits.
Considering the growth leaps that Bangladesh and its private sector have enjoyed even during periods of stress and volatility in the last decade and a half, the country has bright prospects. With smart regulatory and economic support at home; positive geopolitical relationships; and funding, capability building, and strategic support from outside investors and MNCs, Bangladesh can continue to build on its gains.
Although, Bangladesh is tapping into the power of growth mindset, yet it remains largely untapped. Nevertheless, many experts believe that Bangladesh has robust potentiality for domestic companies, a viable investment benefit for venture capitalists, and private equity players as well as a possible strategic foothold for expansion by multinationals, alone or in partnerships with local companies.
The startup landscape has attracted over $880 million in funding over the last decade, with about 90% of these investments coming from outside of the country, and has created more than 1.5 million jobs. In that time, Bangladeshi mobile financial services startup bKash became the nation’s first unicorn when SoftBank acquired a 20% stake in November 2021. Surging toward unicorn status is a wave of startups, including ShopUp, a B2B commerce platform for small businesses, online grocer ChalDal, and ridesharing firm Pathao. And the government is promoting startups through a flagship $100 million venture capital fund called Startup Bangladesh.
The combination of startup activity and expanding domestic VC streams has piqued the interest of large international VCs. According to the United Nations Conference on Trade and Development, FDI inflows to Bangladesh primarily from multinationals rose by nearly 13% in 2021 to $2.9 billion and held at around that level in 2022, even as slowing GDP gains and recession worries were being felt across the globe.
In terms of equity, Bangladeshi firms are using their positive global rankings to leverage equity capital from overseas investors and VCs. For example, bKash’s Softbank investment has been mirrored by capital influxes from Ant Group, the Bill & Melinda Gates Foundation, and the World Bank’s International Finance Corporation. And in some cases, positive standing among international companies has led to technology contributions for Bangladesh firms from overseas outfits.
Considering the growth leaps that Bangladesh and its private sector have enjoyed even during periods of stress and volatility in the last decade and a half, the country has bright prospects. With smart regulatory and economic support at home; positive geopolitical relationships; and funding, capability building, and strategic support from outside investors and MNCs, Bangladesh can continue to build on its gains.
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