Tech startup ShopUp bags $65m in Series B4 funding

Bangladesh business-to-business (B2B) commerce startup ShopUp has raised $65 million in Series B4 funding from Valar Ventures and Flourish Ventures, according to official data seen by DealStreetAsia.

The shares are being issued at about $56 apiece, same as the company's Series B3 round, data of Singapore's Accounting and Corporate Regulatory Authority (ACRA) show.

ACRA filings only reflect equity funding received so far in a round, and the overall round could be bigger or have other components such as debt, reports Nikkei Asia.

The startup won a $34 million Series B extension round in January 2022, following its Series B round where they won $75 million in September 2021. 

Since then, the company has grown four times, and the existing investors are doubling down with this follow-up round, reads a press release from ShopUp.

Sequoia Capital India and Flourish Ventures co-led ShopUp's $22.5m Series A round.

Founded in Bangladesh's capital Dhaka in 2016 by Afeef Zubaer Zaman, Siffat Sarwar and Ataur Rahim Chowdhury, ShopUp provides B2B services such as sourcing, logistics and financial services to micro, small and medium enterprises through its mobile-first digital platform and last-mile logistics service RedX.

Its financial services product gives small shops access to digital credit through partnerships with local financial institutions.

ShopUp's B2B commerce app, Mokam, also helps mom-and-pop shops by giving them access to the nation's largest catalog of products with 24-hour doorstep delivery -- all via a single app.

Mokam has partnered with the country's largest manufacturers, producers and distributors to ensure what it says is the best pricing for these products.

Additionally, store owners can obtain items on credit by accessing ShopUp's "buy now, pay later" function in the app.

The startup opened an office in India after it merged with Bengaluru-based e-commerce platform Voonik in February 2020.

Bangladesh is home to one of the most fragmented retail markets in Asia, with 98% of all retail consumption done through 4.5 million small shops across the country, ShopUp said earlier.

The shops struggle daily when procuring goods from multiple suppliers, distributors and wholesalers.

In an interview with DealStreetAsia in October, Zaman said his company was operationally profitable -- earning money on every transaction -- because it offers multiple services to each customer.

In a September news release, the company also said that revenue grew by 13 times in the previous 12 months, while total shipments were up 11 times.