ShopUp gets $30 million in debt financing to fuel expansion

February 2, 2023

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ShopUp, the largest full-stack B2B commerce platform in Bangladesh, announced today that it has secured $30 million in debt financing. The company plans to use the investment to drive expansion efforts and strengthen the company’s supply chain operations, benefiting small businesses and consumers across the country.

Who are the investors?

$20 million from Lendable, the global provider of debt to fintech companies in emerging markets. This will be their first investment in South Asia.

The rest BDT equivalent of $10 million in debt financing comes from The City Bank, a leading commercial bank in Bangladesh.

What Shopup is building?

Bangladesh’s retail market is highly fragmented, with 4.5 million small shops accounting for 98% of total consumption in the country. These small, scattered shops are responsible for distributing food and household items across the country and they face issues such as product unavailability, unreliable delivery, and lack of access to affordable financing.

ShopUp launched a commerce platform called Mokam that partners with manufacturers, brands, and mills to streamline the distribution of food and household necessities to small shops.

Shopup claims currently, 20 million people in Bangladesh access food and essentials through Mokam’s network of shops. The company operates the largest last-mile logistics network in Bangladesh, REDX.

What’s coming next?

With over $200 million in investments from global investors already raised, the recent debt financing of $30 million will enable ShopUp to further its efforts in building critical supply chain infrastructure, partnering closely with mills and manufacturers, and expanding its financial services products to support underserved SMEs in the food value chain.

The funds will also help address the significant food waste issue in Bangladesh, with over 30% of production going to waste, by implementing a seamless distribution system that reaches 50% of the population, ensuring food security for all.

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