TLDR:
- Startup investments in Bangladesh dropped 70% in the January-March period compared to the previous quarter.
- Only $6.7 million in funding was received by local startups during this time.
Investments in Bangladeshi startups saw a significant decline of 70% in the first quarter of the year, totaling only $6.7 million. This drop is even larger compared to the same period last year, with an 82% decrease. Despite this, there was a slight improvement from the funding received in the previous quarter. A total of four Bangladeshi startups secured venture capital funding in the first quarter, signaling a decline from the 20 deals seen in the same period last year.
PriyoShop, a local e-commerce platform, managed to attract $5 million in foreign funding in the first quarter as it focuses on expanding in the B2B e-commerce sector. Other startups like Apon Wellbeing and Hishab also secured significant funding during this period. However, the overall trend reflects a challenging environment for startups in Bangladesh.
The funding winter is not unique to Bangladesh, as global startup investments experienced a 26% decline in the first quarter. With high inflation and interest rates, investors are cautious about investing in high-risk fields like startups. Despite these challenges, the hope remains that as the economic environment improves, venture capital will flow more robustly, supporting the growth of startups in the country.
Since the beginning of the funding winter in mid-2022, direct jobs at Bangladeshi startups have decreased by a third, highlighting the impact of the economic climate on the startup ecosystem. With around 2,500 recognized startups in Bangladesh, the need for sustainable funding and support remains crucial for the growth of the startup ecosystem in the country.
