Scaling Up Methodology Empowering Startups in BD

A five-day nationwide internet blackout has cost e-commerce businesses in Bangladesh at least Tk 600 million, severely impacting operations from inventory tracking to deliveries amid a curfew. Small businesses, particularly those operating through Facebook pages, were the hardest hit, affecting an estimated 200,000 to 300,000 entrepreneurs.

An investment of Tk 5 crore for Bangladesh's largest ed-tech platform, 10 Minute School, was turned down by Startup Bangladesh, a government investment fund. Agreements on confidentiality prevent us from mentioning the reason for rejection. Ayman Sadiq, the CEO of 10 Minute School, has openly backed the quota reform demonstrations, which are aligned with this choice.

The National Security Intelligence has recommended seizing properties and taking legal action against executives of two defunct e-commerce platforms accused of defrauding customers. The Directorate General of NSI submitted reports to the commerce ministry, citing that 35 e-commerce companies disappeared with customers' funds in 2020-21.

A recent UNCTAD report highlights that Bangladesh, among other Least Developed Countries (LDCs), has a low proportion of internet users engaging in online purchases, with less than 10% participating last year. Globally, e-commerce has seen significant growth, with an estimated 2.3 billion people shopping online in 2021, up from 250 million in 1999.

Shark Tank Bangladesh's debut season has been a catalyst for innovation in Bangladesh, securing Tk 10 crore in investments across diverse sectors including electric vehicles, health foods, medical software, and more. Standout ventures like Palki Motors, Soya Gallery, and Dubo Tech captured the Sharks' attention, with Soya Gallery receiving 20 lakh taka cash and 10 lakh taka in support for 20% equity, and Dubo Tech securing 50 lakh taka plus R&D access for 10% equity.

In April, e-commerce spending using cards in Bangladesh decreased by 7.45% compared to March, totaling Tk 15.89 billion versus Tk 17.17 billion. This decline reflects ongoing challenges from the dollar crisis and high inflation. Card transactions for e-commerce also fell from 5.38 million in March to 4.98 million in April. Despite these setbacks, stakeholders anticipate growth, driven by Bangladesh's robust online shopping community and expanding internet access. The sector, currently valued at Tk 450 billion, aims to reach Tk 500 billion by year-end 2024, with challenges including delayed imports due to the dollar crisis impacting growth.