PriyoShop, a B2B retail marketplace for MSMEs in Bangladesh, has announced raising $5 million in a pre-Series A funding round anchored by Century Oak Ventures, a Dubai-based venture capital investor.
The pre-Series A funding round was also participated by Evolution Ventures, Iterative, SOSV (Orbit Startups), GFR Fund, BonBillo, Accelerating Asia, South Asia Tech Partners, and Voltity. Many of the investors were first time players in Bangladesh.
The startup, launched in July 2021, seeks to digitalise the business operations of retail MSMEs in Bangladesh and provide them with value-add services.
PriyoShop’s target market piques investors’ interest as, according to data cited by the startup, about 97% of the $200 billion in total annual retail sales in Bangladesh come from informal retailers, majority of which are neighbourhood shops.
PriyoShop’s asset-light marketplace model helps small businesses source goods, gain access to competitive prices, and receive goods through next-day delivery.
It also provides tailored credit facilities and access to supply chain financing options through its partnership with digital financing platform LankaBangla Financing, per the announcement.
To date, the startup said it has partnered with over 200 major brands, including Pusti, Rupchanda, Teer, New Zealand Dairy, Pepsico, and Coca-Cola. It also has about 55,000 merchants on its platform.
The fresh capital will be used to enhance the startup’s technology infrastructure and expand further its geographical reach and market penetration, said its founder and CEO Asikul Alam Khan. “This funding marks a pivotal moment for PriyoShop and validates our commitment to empowering MSMEs in Bangladesh,” Khan added.
PriyoShop’s funding comes as Bangladesh’s startup ecosystem experienced notable shifts, with total investments raised in 2023 amounting to $72 million across 45 deals, according to a report published by LightCastle Partners.
Leading sectors included financial services, garments and textiles, and education, which secured $49 million across 14 deals. Key deals in 2023 in Bangladesh included B2B startup ShopUp, edtech firm 10 Minutes School, online pharmacy Arogga, and public transportation startup Jatri, which collectively secured $43 million.