Bangladesh's startup ecosystem is rapidly evolving, with a diverse set of fascinating companies emerging to address pressing challenges and drive economic growth. Of course, Bangladesh is currently going through a challenging political transition. The country just came out of a brutal dictatorial rule after a bloody student-people revolution last week. The overall political and business scene remains uncertain.
Despite the uncertainties, people are jubilant. Growing optimism among businesses and entrepreneurs indicates that the future is going to be better. Albeit, there is enough cause for optimism. Without freedom, there is no progress. As the country finally finds its path to democratic norm after years of oppressive systems, shrinking space for freedom of speech and expression, and widespread corruption, it offers an opportunity for an explosion of innovation and entrepreneurial energy. People have already begun their work to build a better Bangladesh. People from all walks of life agree that the country must not waste another chance to build a better Bangladesh this time.
These are difficult and hopeful times. There is much to be done. There is no time to waste. As we enter a new period in the history of Bangladesh, we are publishing our first startups to watch list in months.
Our startups to watch list features fascinating and promising companies from across verticals that we think have the potential to become dominant players in their verticals, while positively impacting the lives of their users.
This week’s list features five companies coming from a wide range of sectors building unique solutions to complex and critical problems. From fintech solution empowering small businesses to fractional land investment platform to supply chain and fintech platform for fisheries and blue economy to retail-tech platform focused on serving factory workers, these 5 startups are poised to make a significant stride in the coming days.
Keep an eye on these exciting companies as they navigate the path to success and make their mark.
Founders: Rakin Mohammad Savi, Zahin Mohammad Juvi, and Ratul Bin Tazul
Founded: 2020
Description: Hishabee is a full-stack business solution that helps small businesses in Bangladesh reduce bottlenecks, lower overheads, and open new revenue streams. It provides a one-stop solution for business accounting, e-commerce websites, and marketing needs in both Bengali and English languages, with easy-to-use Bengali training videos and tutorials.
Business Model: Hishabee offers a web and app-based solution that enables small businesses to access technology, market, finance, and information without requiring any technical knowledge or coding skills. The company also has a lending solution for MSMEs that uses its own credit rating to provide loans to MSMEs. Hishabee essentially looks to build a platform for MSMEs where it provides these businesses with an end-to-end solution from technology to finance to marketing.
Funding: Hishabee received investment from Accelerating Asia as part of their Cohort 7 accelerator program.
Why to Watch: Hishabee is an innovation enabler, allowing Bangladeshi small businesses to tap into and successfully leverage the digital economy for growth. This is a big market. The timing appears right—there is a growing digital services adoption and the technology infrastructure has improved over the last decade. Founders are deeply passionate about the business and have shown the ability to find innovative solutions to pesky market challenges. The company has an opportunity to build a platform and offer integrated services to these small and medium enterprises.
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Founders: Alvi Sakib and Ayaz Hossain
Founded: 2023
Description: Jomee Jomaa is a fractional land investment platform that democratizes real estate investing in Bangladesh. It aims to address the challenges faced by average citizens when trying to invest in land, such as high capital requirements and complex property document verification processes. What Jomee Joma essentially does is securitization/tokenization of land, allowing regular people to benefit from investing in land.
Business Model: Jomee Jomaa identifies promising land opportunities with high growth potential. These lands are then fractionally segmented, allowing members to invest in smaller units. Over a period of 3-5 years, the land's value appreciates, providing investors with growth opportunities. The platform charges a fee upon the land's sale, deducted from the investor's profits.
Funding: N/A
Why to Watch: Jomee Jomaa makes real estate investing in Bangladesh accessible to everyone. By breaking down complex processes and allowing fractional ownership, the startup aims to democratize wealth creation through land investment. Bangladeshis suffer from a lack of investment opportunities. While the country has a growing middle class with rising disposable income, the available investment instruments remain limited to bank saving schemes, bonds, and the capital market. All these options come with various limitations. For instance, the capital market in Bangladesh is still underdeveloped and doesn’t offer meaningful opportunities. To that end, Jomee Jomaa has an opportunity to provide a true alternative to people seeking meaningful investment opportunities.
Further reading:
Founders: Amirul Mostafa Arefeen
Founded: 2022
Description: Seaqua is a Bangladeshi blue-tech startup that aims to digitize the country's fisheries and aquaculture industry. The company has introduced an innovative value chain designed to minimize wastage and enhance efficiency at every stage of the supply chain.
Business Model: Seaqua integrates real-time catch records into its supply chain, providing retailers with accurate, up-to-the-minute information with a focus on the traceability of seafood products. The company also emphasizes compliance, verifying adherence to fishing season regulations, authorized fishing areas, transshipment at sea guidelines, and social accountability standards. Seaqua provides financing to fisheries and sea-going vessels, buys the fish they catch, and sells them in local and international markets. The company aims to build an end-to-end supply chain for seafood.
Funding: In January 2024, Seaqua secured a six-figure foreign direct investment (FDI) from investors in the Middle East.
Why to Watch: Seaqua operates in a complex market. The market has a high entry barrier. The supply chain is complex and the market is traditionally overlooked by the traditional tech and finance players, creating an excellent opportunity to build a large and dominant player in the vertical.
Seaqua's adoption of blockchain technology for traceability maps bridges blue finance gaps and ensures a verifiable commitment to compliance, offering a comprehensive solution to the challenges faced by the fisheries and aquaculture industry. The convergence of an efficient supply chain, financing, real-time data integration, and rigorous compliance measures positions Seaqua as an important blue-tech player in Bangladesh.
Further reading:
Founders: Sultan Moni, Mumtahina Anika, and Fahim Al Mahmud
Founded: 2022
Description: Zatiq is a Dhaka-based fintech startup that focuses on empowering small and medium enterprises (SMEs) in Bangladesh through innovative financial solutions. The company aims to simplify accounting and enhance financial management for local businesses by providing user-friendly software and hardware solutions, such as the Zatiq Business Calculator, which helps users track finances and generate reports.
Business Model: Zatiq targets the 4.5 million SMEs in Bangladesh, addressing their specific challenges, such as limited access to capital and the need for simplified technology. The Zatiq Business Calculator allows micro-merchants to easily manage transactions and send payment reminders, thereby reducing accounting complexities. Additionally, Zatiq is developing a digital payment infrastructure through products like PocketPay, which facilitates cashless transactions for delivery and e-commerce sectors.
Funding: In August 2023, Zatiq raised $1.6 million in a pre-seed funding round led by Dekko ISHO Venture Capital and with participation from various local and foreign angel investors.
Why to Watch: Zatiq is positioned as a promising player in the Bangladeshi fintech landscape by focusing on the unique needs of SMEs. The startup's innovative products and substantial funding indicate strong potential for growth and impact, making it a noteworthy player in the fintech sector. MSME digitization is a large market in Bangladesh. Zatiq started with solving the challenge MSMEs face in maintaining accounting and has since expanded into several products. The market offers excellent opportunities to expand across the value chain.
Further reading:
Founders: Saif Rashid
Founded: 2019
Description: Apon Bazaar is a social enterprise that serves the needs of industrial workers, particularly in the ready-made garment (RMG) sector. The startup operates as an omnichannel marketplace, providing affordable products and services directly to workers through factory-based shops and a mobile app. Apon Bazaar aims to improve the socio-economic conditions of low-income workers by offering essential goods at discounted prices and facilitating access to financial services.
Business Model: Apon Bazaar’s model focuses on providing a range of well-being products and services tailored to the needs of industrial workers. The company operates shops within factories, selling groceries and household items at prices up to 10% lower than traditional retail. Workers can purchase items on credit, with repayments deducted from their salaries, and earn reward points for their purchases, which can be redeemed for health coverage and insurance. This approach not only addresses immediate financial needs but also promotes long-term economic well-being. Apon Bazaar has created a new model for retail operations in Bangladesh.
Funding: In February 2024, Apon Bazaar raised $1.5 million in a pre-seed investment round.
Why to Watch: Apon Bazaar is making significant strides in addressing the challenges faced by industrial workers in Bangladesh. The company claims that it has already impacted over 100,000 workers at 27 factories and aims to empower a million workers in total. Apon Bazaar's innovative approach to providing essential services and financial inclusion positions it as a key player in the social enterprise landscape, making it a startup to watch in the coming years.
