Startup Bangladesh, the flagship venture capital company of the ICT Division, has decided to invest in SWAP, the first re-commerce platform in Bangladesh to enable the country to "innovate faster," reports UNB.
SWAP enables "low-income households to buy, sell and exchange products - increasing economic participation and access to technology" in an emerging market such as Bangladesh.
An agreement was signed Wednesday between the organisations in Dhaka for a Tk 50 million (5 crore) investment in the pre-series A round.
Starting in 2020, SWAP has generated more than $43 million in gross merchandise value (GMV), with a current monthly GMV of over $2.5 million, according to a media statement.
Startup Bangladesh, the first and only venture capital fund sponsored by the government, started its journey in March 2020 with an allocated capital of Tk 5.0 billion (500 crore).
"Startup Bangladesh aims to support homegrown startups to grow and reach heights that generate higher standards for more foreign investment. The local startup ecosystem is greatly influenced by prospective ventures like SWAP," Sami Ahmed, managing director of Startup Bangladesh, said.
"With the right strategy and focus, SWAP will be able to make a remarkable example as a successful and sustainable startup in the ecosystem."
"We believe that SWAP provides a solution that the Bangladesh market greatly needs. By building an ecosystem for pre-owned goods, we are providing our country's low and middle-income households access to technology at an affordable price while encouraging the circular economy mandate," SWAP CEO and Co-founder Parvez Hossain said.
"By reusing and increasing the lifespan of electronic devices and light vehicles, we can also ease the pressure on import of such goods, easing the stress on our dollar reserve."