Bangladesh's Largest B2B Commerce Platform Raises USD 30M in Debt Funding

ShopUp, Bangladesh's largest full-stack B2B commerce platform, announces a significant accomplishment with the acquisition of $30 million in debt funding. The funds will be used to improve the company's supply chain operations and to support expansion efforts, benefiting small businesses and consumers across the country.

Lendable, a global provider of debt to emerging-market fintech startups, contributed $20 million to the $30 million financing round, marking the company's first investment in South Asia. ShopUp also received debt financing from The City Bank, a major commercial bank in Bangladesh, for BDT equivalent to $10 million, a first for a local company.

The retail industry in Bangladesh is extremely fragmented, with 4.5 million small businesses accounting for 98% of all purchases made there. These small, dispersed stores distribute food and household goods across the country. They continue to face issues with product availability, delivery dependability, and access to low-cost financing.

Mokam, ShopUp's commerce platform, streamlines the delivery of food and household essentials to small businesses with the help of manufacturers, brands, and mills. Mokam's store network currently provides food and necessities to 20 million people in Bangladesh. The company, which operates REDX, Bangladesh's largest last-mile logistics network, is dedicated to filling infrastructure gaps in the country's food supply chain.

The recent $30 million debt financing will enable ShopUp to continue developing critical supply chain infrastructure, collaborating closely with mills and manufacturers, and expanding its financial services products to support underserved SMEs in the food value chain. This comes after raising more than $200 million in investment from international investors.

The funding will also help to address Bangladesh's major food waste problem, where over 30% of production goes to waste, by developing a seamless distribution system that reaches 50% of the population and provides food security for all.

“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. “Our recent success in securing financing is a reflection of our financial stability and our efforts towards having a positive impact in Bangladesh.”

“We have been impressed by the scale of business and quality of team that ShopUp has built to date and are happy to be supporting the impactful work ShopUp has been doing in providing access to goods and capital to underserved MSMEs in Bangladesh” added Hani Ibrahim, Chief Investment Officer of Lendable. “We continue to work closely with ShopUp to facilitate additional debt capital into their business as they roll out their growth plan”