Startup Ecosystem: Prospects & Way Forward
Growth in traditional drivers such as RMG, Agriculture, etc. along with pragmatic economic policies of the government have catalysed the tremendous growth of startup ecosystem in Bangladesh. Needless to say, 2021 was a year of recovery and progress for startups as Global Pandemic fasttracked technology adoption across various segments and the country got its first ever Unicorn, a Startup which has valuation of more than USD 1 bln, in Bkash.
In 2021, startups had raised USD 166 mln of total fund which was only USD 40 mln in 2020. Like most emerging markets, the growth of this ecosystem in the coming years is expected to be aligned with growth of E-commerce, logistics and payments segments. These sectors along with ridesharing, delivery solutions & consumer services attracted the deserving attention from foreign investors. Health-care, Foodtech and Education sectors also witnessed notable growth. Appreciatively, Bangladesh government also launched its own Startup Bangladesh, which is a USD 11.5 mln fund to support startups. It has already invested around USD 11.1 mln in 50 startups.
Startup Ecosystem in Bangladesh offers lucrative landscape of untapped opportunities. Remarkable growth can still be obtained in this ecosystem, if major segments such as garments, wealth management, insurance, micro financing, etc. can be addressed. Proper infrastructure, process and guidelines tailor-made for the Incubators, Venture Capitals and Angel Networks would encourage more investments. Resultantly, it would pave way for more global investors such as Tiger Global, Sequoia and Softbank, in the years to come.
RIFAT ISHTIAQ KHAN
Manager
IDLC Finance Ltd
More Print Editions Subscribe