ShopUp, a small and medium business startup company, has received a loan facility of Tk. 300 crore. ShopUp plans to use the money to expand its business and strengthen the company’s distribution network. They hope that by utilizing this loan, small traders and buyers across the country will benefit.
According to a press release, Lendable, a global financing company that finances emerging fintech companies in various countries, will provide Tk. 200 crore out of the Tk. 300 crore loan. This is the first time the company has funded a South Asian company.
The rest of the money was given by City Bank of the country. They have given Tk 100 crore debt financing to the shopUp. This is a first for any domestic startup.
There are more than 4.5 million grocery stores in Bangladesh; the notice said, about 98 percent of the country’s shopping is done through these grocery stores. But these grocers suffer from various problems, including shortage of products, supply crunch and lack of affordable credit.
The notification also said that ShopUp’s e-commerce platform ‘Mokam’ is working to solve these problems. They tie up with various food manufacturers, brands and factories to deliver food and daily necessities to grocery stores.
RedX, one of the largest logistics services in the country, is being operated under the supervision of the shopUp, through which daily essential food items are reaching the doorsteps of grocery stores. In continuation of this, ShopUp wants to invest in infrastructure development to solve the existing problems in the food supply sector.
Earlier, the company has received investment of more than 2000 crore taka from various international investment companies, the notification said. The newly secured Tk. 300 crore loan will invest in infrastructural development of the shopUp distribution system and work more closely with various factories and food manufacturers. Apart from this, small entrepreneurs working in the food distribution system will be given the necessary financial services to grow their business.
Again, with this funding, ShopUp will also work to eliminate food waste and ensure food safety in Bangladesh. Afif Zaman, CEO of ShopUp, said in the notification, ‘With the new funding, we want to build a distribution system that will deliver daily necessities including food to eight crore people of the country. This funding is a reflection of our financial strength and a reward for positive work.’
Speaking about the funding, Lendable Chief Investment Officer Hani Ibrahim said, ‘Over the past few days we have been impressed by the scope of ShopUp’s work and the skills of their staff. We are delighted to be associated with ShopUp for the development of small and medium entrepreneurs in Bangladesh. We will continue to work closely with ShopUp in the future and support them in their progress.’
