Bangladeshi startups, grappling with funding shortages and high inflation, have implemented aggressive cost-cutting measures, leading to a nearly one-third reduction in the workforce by mid-2022. The number of employees in the startup sector has dwindled from around 50,000 to approximately 35,000 over the past year.
Funding challenges, exacerbated by a global venture capital retreat, forced startups to halt expansion or downsize to survive, significantly impacting the job landscape. While regulatory filings indicate accumulated losses exceeding Tk650 crore for certain startups, disclosed investments in Bangladeshi startups dropped to $72 million in 2023 from $125 million in 2022.
Despite the downturn, some startups, including Sheba Platforms, Pathao, and SteadFast, emerged as net job creators in 2023. The government’s intervention through Startup Bangladesh helped sustain potential startups during the crisis. Bangladesh aims to build 50 home-grown unicorn startups by 2041, contributing to economic growth and job creation.
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