Digital startups open new potential in Bangladesh’s economy

The things that can now be done with a smartphone were unthinkable even ten years ago. And with only a click, we may now access any location in this world anytime. The young people of Bangladesh used to dream of working elsewhere. However, they now have the chance to sit in the country and experience their dream. And the driving force behind all of these digital transformations is startups.

With the help of young entrepreneurs with extensive knowledge of information technology, the nation’s startup industry is growing every day. This is attracting a significant amount of foreign capital to the nation. A total of 909 million US dollars, including 841 million US dollars from foreign investments, were invested in 377 new businesses in Bangladesh between 2013 and 2023. Domestic investors contributed the remaining 68 million dollars, while only 7% of startup funding comes from domestic sources.

Besides, more than 1.5 million people have been employed. Nearly all of these companies’ owners and staff are young. However, a startup-friendly atmosphere is required for the complete development of this promising sector of the nation. All of the facilities required for the establishment and growth of startups will be readily available to young entrepreneurs. This is referred to as the startup ecosystem.

Startups have only been around in Bangladesh for a little over a decade. Established in 2010, BKash is the first successful startup in Bangladesh to provide mobile financial services (MFS). Besides, Bangladesh began to recognize the idea of startups in 2013. Following that, several more businesses emerged one after another.

Digital startup bKash: A symbol of Bangladesh’s success in the MFS sector. | Photo collected.

Bangladesh’s economy is expanding at an impressive 7.1% annual rate. As a result of this economic development, the nation now has a thriving startup scene. 75% of the 126 million people who use the internet do so because of the digital revolution, which is a major factor in this rise. The vast number of people using the internet is generating a sizable digital market.

But since 2020, funding for startups has grown significantly as a result of the Corona pandemic’s extensive reliance on the internet. As some domestic entrepreneurs have stepped forward, the startup sector has begun to grow in tandem with international investment.

The United States’ Silicon Valley is known as the “paradise of startups” because it is the place of the greatest number of startups worldwide. Where almost 70,000 new businesses are founded. You can see how tech startups can revolutionize a nation’s economy just by taking a look at this. And the ecosystem that is conducive to startups has made all of this possible. The role that American universities play is what drives the majority of startups in the country.

Startups in Bangladesh

Notable startups in Bangladesh include – BDJobs, Chaldal, Food Panda, Pathao, Rokomari, Sheba, Shopup Poster Boy, etc. In addition, in e-commerce, Ajker Deal, Sindabad, Khas Food, Sajgoj, Click BD, HungryNaki, Styline, Priyo Shop or in logistics and transportation, Loop, Paper Fly, Truck Lagbe, ECourier; in marketplaces, Hello Task, Handy Mama; in fintech, Paywell, AmarPay; in edutech, Eso Shikhi, Repto; in content, Maya, G&R, Bongo; in health tech, Allowell, Prova, Dims, Simed; in agritech, Drink Well, Pharmarhub, iPharmer; in deep tech, Ether, Bonton, Gaze; Software includes Brainstation23, Rightbrain, Kaj, Bari Koi, Nesenia, Fieldbuzz, Zoomsepar.

Digital startups in Bangladesh: A new horizon for economic development. | Photo collected.

These are hoped to produce the next unicorn or billion-dollar company. Conventional businesses anticipate greater profitability sooner. However, because e-commerce grows their firm so quickly, revenues are made gradually.

An easy option to rent a truck from home to transport necessities from anywhere in the nation has been introduced by the company “Truck Lagbe.” In 2018, this firm began operations with just 50 vehicles nationwide. On the other hand, they presently have over 100,000 trucks registered. So far, the company has attracted around 340 million taka in investments from both domestic and foreign sources.

likewise, Pathao began as a ride-sharing website when it was first founded in 2015. At the moment, this digital service platform provides a variety of services in addition to ride-sharing, including food delivery and e-commerce logistics services. The number of clients using the service has surpassed 100,000 due to the company’s financial expansion. Last year, 3.8 million dollars was invested in this startup.

Opportunities for Digital Startups

The potential for digital startups in Bangladesh is enormous. The government offers a range of technological facilities. There are a lot of people in Bangladesh who utilize mobile internet. As a result, there is a big market for new digital firms. The younger generation, which makes up a sizable section of Bangladesh’s population, is eager to launch innovative enterprises. The rapid expansion of Bangladesh’s IT industry is a key component of the country’s ability to develop a startup ecosystem.

The potential of digital startups: A groundbreaking impact of innovation and technology. | Photo collected.

Some Problems and Solutions

Even after they launch, many firms in Bangladesh fail to survive, despite the country’s enormous startup potential. Entrepreneurs’ inadequate understanding of startups is the primary cause of this. Many firms fail after being launched without a proper plan. Therefore, before launching a firm, it is crucial to gain the necessary information. Business knowledge, marketing techniques, and investment raising are all necessary. A thorough plan should be written before launching a new company. Participating in the startup ecosystem and collaborating with other entrepreneurs is crucial.

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