Troubles at Pickaboo, Late Stage Funding In Bangladesh, and Pickaboo Lessons
Once a leading ecommerce player in Dhaka, Picakboo has been going through a tough time from the beginning of 2019. Early this year, the company went through several major layoffs and management challenges such as product theft, Pickaboo’s once operator and CEO Shahrear Sattar left and the company significantly scaled back its operation.
The most recently Tech Shohor reports that the company is considering a shutdown or a further scaling back of its operation from December this year unless it could raise investment in the next two months. Pickaboo has been trying to raise money from both local and international investors with limited success. The company has already been operating on a limited scale for the last several months.
Started in 2016, Pickaboo quickly became one of the leading eCommerce players in Dhaka. Excellent customer service, authentic products, and effective marketing helped the company quickly rise in the rank of ecommerce competition in Dhaka.
Funded by Edison Group, a local conglomerate that owns mobile handset brand Symphony, and Indian MoMagic, Picakboo invested heavily in growth in the first few years of its journey until more competition came into the market like Daraz who started to outspend and change the dynamics of the market in the process. Growing competition, expensive operation, and a series of management and strategic errors took a toll on Pickaboo. In the meantime, Pickaboo tried and failed to raise external investment that handicapped its growth initiatives.
eCommerce in Bangladesh
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Ruhul Kader is the Co-founder and CEO of Future Startup and author of Rethinking Failure: A short guide to living an entrepreneurial life. He writes about internet business, strategy, technology, technology policy, and society. He can be reached at [email protected]