ShopUp, a Bangladesh-based startup seeking to digitalise mom-and-pop shops in the country, has raised $74.4 million in a Series B round led by Valar Ventures, according to Accounting and Corporate Regulatory Authority (ACRA) filings accessed by DealStreetAsia – DATA VANTAGE.
US-based venture capital fund Valar Ventures, a new investor in ShopUp, committed $45 million in the round and is now ShopUp’s largest investor with a 19.26% stake, according to DealStreetAsia’s calculations.
Another new investor in the round is Naspers Ventures, the VC arm of South Africa’s internet and media giant Naspers.
Existing investors Sequoia Capital India, Flourish Ventures, KDV Capital, Lonsdale Capital (Singapore), and VEON Ventures re-upped in the latest round.
VEON, a Nasdaq and Euronext Amsterdam-listed provider of connectivity and internet services, is now ShopUp’s second-largest investor with a 12.46% stake. It had first invested in the startup last year through its venture arm, VEON Ventures.
According to its latest ACRA filings, ShopUp allotted 242,090 Series B1 preference shares to investors, including Flourish Ventures, Sequoia Capital India and VEON, at $30.47 apiece for a total consideration of $7.37 million.
The startup also allocated 1.33 million Series B2 preference shares to a set of investors, including Valar Ventures, Naspers Ventures, Ohana Holdings and Sequoia Capital India, at $50.15 per share to garner nearly $67 million.
ShopUp’s valuation stands at $233 million following the latest funding.
DealStreetAsia has reached out to ShopUp for comments.
Founded in Dhaka in 2016 by Afeef Zubaer Zaman, Siffat Sarwar, and Ataur Rahim Chowdhury, ShopUp had last raised $22.5 million in a Series A round co-led by Sequoia Capital India and Flourish Ventures.
ShopUp provides B2B sourcing, logistics, and financial services to micro, small and medium enterprises (MSMEs) through its mobile-first digital platform, and last-mile logistics service RedX. Its embedded financial services product provides these small shops with access to digital credit through partnerships with local financial institutions.
In November 2018, impact investment firm Omidyar Network had led a $1.62 million investment in the startup.
There are 4.5 million neighbourhood mom-and-pop shops in Bangladesh, known locally as Mudi Dokaans, that account for 98% of the country’s retail sector, making the country one of the most fragmented retail markets in Asia, according to ShopUp.
The startup opened an office in India after it merged with the Bengaluru-based e-commerce platform Voonik in February 2020.
According to an article published by The Business Standard last month, ShopUp currently has 500,000 sellers and 200 distribution hubs, its director of brands and communication Raquib Chowdhury said.
The space for startups to digitalise mom-and-pop stores has heated up in emerging Asian countries.
In Indonesia, for instance, startups focused on digitalising mom-and-pop stores have been on a fundraising spree since the start of the year. Jakarta-based GudangAda raised more than $100 million in a Series B round led by Asia Partners and Falcon Edge in July.
MSME bookkeeping app BukuKas closed a $50 million Series B round led by London-based investment firm Hedosophia in June. In the same month, accounting startup BukuWarung raised $60 million in a Series A round led by US-based VC firms Valar Ventures and Goodwater Capital.