Daraz’s Journey: From Startup to South Asia’s Leading E-Commerce Company

We all rely on internet purchasing to some extent in our hectic daily lives. And Daraz is the first website that comes to mind when we hear about online purchasing. We hear about Daraz’s social media campaigns, such as 11.11. Have we ever given any attention to how Daraz got its start? Do we know Daraz’s past? Let’s look closely at Daraz’s history, including how it began in Bangladesh and rose to prominence as a leading e-commerce site.

The Beginning

The journey of the popular e-commerce platform Daraz began in 2012. The word Daraz means ‘drawer’ in Urdu. Daraz was originally started by Muneeb Maayr (chief founder) and Farees Shah (co-founder) of the popular German startup Rocket Internet. The two founded Daraz with the aim of retailing fashion products. The company was first launched in Pakistan to provide customers with an easy and convenient way to shop online. Daraz was initially funded by Rocket Internet. This European institution invested in Daraz to launch e-commerce in South Asia.

After beginning its activities in Pakistan, Daraz progressively extended to Bangladesh, Nepal, Myanmar, and Sri Lanka. At first, it was just a website that sold clothing online. However, with time, it evolved into a generic internet marketplace.

Daraz’s Journey in Bangladesh

In 2015, Daraz began operating in Bangladesh under the name “Daraz Bangladesh”. Following the operation, Mushfiqur Rahim, the captain of the Bangladeshi cricket team at the time, had been Daraz’s goodwill ambassador. In 2015, Daraz released a mobile app for iPhone and Android customers to improve customer support. Daraz has rapidly become more well-known in Bangladesh since then. Daraz is currently Bangladesh’s most well-known online retailer. Bangladesh is where Daraz makes the most money, even though its businesses are dispersed over five nations. The Daraz Bangladesh website receives approximately one million visits daily on average, according to Daraz. Additionally, Daraz pays the government tax roughly 5 crore taka each month, making it the biggest-paying e-commerce company in the nation.

Daraz and Alibaba – The Beginning of a New Era

Alibaba is by far the most renowned e-commerce major. Alibaba acquired Daraz Group on May 9, 2018. A new chapter in Daraz’s history begins with this. After being purchased by Alibaba, Daraz began to make more and more money. Daraz became a component of Alibaba’s worldwide e-commerce network. Currently, Daraz operates in a number of Asian nations, including Bangladesh, Pakistan, Nepal, Myanmar, Sri Lanka, Thailand, Singapore, the Philippines, Vietnam, and Hong Kong, under the Lazada brand.

The story of Alibaba’s fresh start with Daraz is a fascinating one. Bjarke Mikkelsen, the former CEO of Daraz, knew Alibaba’s president, John Michael, and reached out to him. According to Bjarke, Alibaba would become a minor stakeholder alongside Daraz. Alibaba, on the other hand, purchased the entire business after being wowed by its forex. Daraz’s career with Alibaba started at that point.

Why is Daraz so popular in Bangladesh?

The biggest and most prominent e-commerce business in Bangladesh is Daraz. In a developing country like Bangladesh, purchasing goods from other nations is typically very problematic. However, Daraz is also setting up international vendors to ship their goods to Bangladesh. Domestic products can be delivered in a maximum of five days, and Daraz also offers a seven-day easy return policy. The business introduced Daraz Express, a high-end delivery service, in 2019. It enables Daraz products to be delivered within 24 hours inside Dhaka and within 48 hours outside of it. Additionally, under some sponsorships, Daraz is developing new campings every day. Therefore, Daraz has become quite popular very quickly. Their 11.11 campaign is quite well-liked among them. Products from this campaign were purchased by over 6 million individuals in 2022.

Challenges and Daraz’s Steps

Preserving customers from fraud is Daraz Bangladesh’s largest challenge. Bjarke Mikkelsen, the former CEO of Daraz, was rather concerned about this. He thought that recent e-commerce frauds in Bangladesh were rather out of the ordinary. Additionally, Daraz is the target of other accusations. Daraz strives to give customers the best experience possible. But to make sure that similar occurrences don’t occur in Bangladesh’s e-commerce industry again, Bjarke asked the government and business sector to work together.

Daraz is concentrating on two things to take care of these problems. To start, they are concentrating on the caliber of their goods. They also concentrate on the experience of the seller. They are also spending money to guarantee that Bangladeshi users can fully utilize the Daraz app in Bangla. It means that everything is being translated into our mother tongue, including the categories and navigation, product material, reviews, and more.

Lastly, some words

In Bangladesh, Daraz is the biggest online marketplace. Despite several grievances and challenges, Daraz is working to give its clients the greatest experience possible. Many internet businesses find inspiration in Daraz’s path from nothing to its current level of success.

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