Rising Startup Ecosystem of Bangladesh

The startup ecosystem in Bangladesh is growing, with over 1,200 active startups and more than 200 new ones each year. The country’s industries include edtech, marketing and e-commerce. In late 2023, Bangladesh was projected by the Mastercard Economics Institute (MEI) to be the world’s second fastest-growing economy after India among 46 countries.

Growth and Investment in the Startup Ecosystem of Bangladesh

Despite a one-in-ten success rate for startups, investors and accelerators are attracted to Bangladesh’s growth potential. The government is actively supporting startups through startup funding, mentorship, and infrastructure initiatives.

In 2024, Bangladesh saw a decrease in foreign direct investment (FDI) to $1.47 billion, an 8.8% drop from the previous year. This decline is attributed to factors like difficulties in repatriating earnings, foreign exchange instability, economic uncertainties, the upcoming general election, loss of investor confidence, and a credit rating downgrade. In June 2024, FDI growth was just 0.3% of the country's GDP, down from 0.4% the year before.

The Bangladesh government promotes foreign investment through institutions like BIDA (Bangladesh Investment Development Authority), offering a one-stop service for angel investors, including assistance with licenses, land acquisition, and aftercare. Additionally, initiatives like economic zones, simplified procedures, and tax incentives further encourage foreign direct investment (FDI).

Each startup in Bangladesh is known for innovation and a strong, efficient work structure. Bangladesh is positioned as a leading developing nation in South Asia due to its thriving startup ecosystem.

Companies like Y Combinator, the Bill and Melinda Gates Foundation, and Hustle Funds have shown interest in and invested in startups in Bangladesh. Currently, bKash and Nagad are the country's two unicorn startups, with expectations that more unicorns will emerge in the near future.

Some Portfolio Startups | Rising Startup Ecosystem of Bangladesh

Zantrik

Founded in: 2018

Founded by: Farooque Shubho and Biplob Biswas

Headquarters: Dhaka, Bangladesh

Industry: Motor Vehicle Manufacturing Zantrik is driving the digital transformation of Bangladesh's automobile industry. The company is bringing greater transparency, quality and value to car owners. The platform improves efficiency and accelerates growth for garages. Zantrik.com offers expert auto services repair tips and connects customers with trusted mechanics as Bangladesh's leading car maintenance platform.

Hishab

Founded: 2015

Founded by: Zubair Ahmed

Headquarter: Singapore

Industry: IT Services and IT Consulting

Hishab, founded in Bangladesh, aims to create a global revolution using Generative Conversational AI, providing easy digital access to all citizens, regardless of their background, simply through phone calls. The company invests heavily in Research and Development to stay at the forefront of AI innovation, ensuring their solutions lead globally. Hishab’s mission is to create technology that adapts seamlessly to users, regardless of their digital literacy, empowering individuals and organizations with digital assistants to enhance their abilities and drive growth.

Adeffi

Founded in: 2019

Founded by: Binoy Barman

Headquarters: Dhaka, Bangladesh

Industry: Advertising Services

Adeffi is the leading out-of-home advertising platform in Bangladesh. The company is offering data-driven outdoor advertising solutions for brands. Adeffi is revolutionizing the advertising landscape as the country’s first advertising marketplace by leveraging the gig economy and a tech-based platform.

Pavilion

Founded in: 2014

Founded by: Priyom Mozumdar and Mostakim Hossain

Headquarters: Dhaka, Bangladesh

Industry: Spectator Sports

Pavilion is a sports news and content startup. The company has a goal of fostering a sports-loving nation that supports sports in a meaningful way. It provides news, videos, photos, score updates and blogs which covers cricket, football and tennis. Pavilion also offers information on amateur players and develops tech products like a live score engine and tournament management system. The startup is supported by funding from Startup Bangladesh and investment from Smart Bangladesh Accelerator.

Arogga App

Founded in: 2020

Founded by: Rosina Mazumder, Fahad Hossain, Shamim Hasan and Yawar Mehboob

Headquarters: Dhaka, Bangladesh

Industry: Health, Wellness & Fitness

Arogga is a healthcare app that delivers prescription and over-the-counter medicines directly to your doorstep. The app also offers health information, doctor booking services, and features like real-time order tracking and reward points. Arogga provides a wide range of products, which includes medicines, vitamins, supplements, herbal products, beauty items, pain relievers and lab tests. Arogga makes healthcare more accessible and convenient by allowing users to upload prescriptions and receive safe, fast delivery as Bangladesh's first mega online pharmacy. The company’s mission is to offer affordable and convenient access to everyday healthcare needs for the people of Bangladesh.

Bongo

Founded in: 2013

Founded by: Ahad Mohammad, Navidul Huq and Fayaz Taher

Headquarters: Dhaka, Bangladesh

Industry: Online Media

Bongo is a leading South Asian OTT and VOD platform. The platform offers a vast content library and advanced video delivery technology. It also manages a network of over 500 YouTube channels and influencers across five countries, with more than 83 million subscribers and a monthly reach of 210 million unique viewers. Bongo partners with telecom operators to provide premium content as the market leader in Bangladesh. The company is capitalizing on the growing local market.

MedEasy

Founded in: 2020

Founded by: Arefin Zaman

Headquarters: Dhaka, Bangladesh

Industry: Wellness and Fitness Services

MedEasy is Bangladesh's leading digital healthcare platform. The company is offering video consultations with licensed doctors from 23 specialties and medicine delivery across the country. The app also provides doorstep diagnostic services. MedEasy connects users with doctors via video calls and ensures convenient access to healthcare services as the top online pharmacy and healthcare app.

Markopolo

Founded in: 2021

Founded by: Tasfia Tasbin, Mubtaseem Zaman and Rubaiyat Farhan.

Headquarters: Dhaka, Bangladesh

Industry: Information Technology & Services

Markopolo.ai is a Bangladesh-based startup offering AI-powered marketing solutions tailored for small and medium-sized businesses (SMEs). Their platform helps businesses create, distribute and optimize content using machine learning and data visualization to better understand their customers and market. The company’s services include strategy creation, ad creation and optimization, automated caption generators, AI-generated branding creatives, campaign analytics and social media marketing boosting.

Amar Lab

Founded in: 2021

Founded by: Tazin Shadid and Dr. Ishtique Zahid

Headquarters: Dhaka, Bangladesh

Industry: Hospitals and Health Care

AmarLab is the first and largest diagnostic marketplace in Bangladesh. The company is connecting customers with labs offering a wide range of affordable tests and delivering reports online within hours. This digital healthcare startup also provides at-home diagnostic test services, which is making healthcare more accessible for individuals who have difficulty traveling. AmarLab allows people to enjoy the convenience of diagnostic testing from the comfort of their home with this innovative service, without the need to visit diagnostic centers.

Intelligent Machines

Founded in: 2018

Founded by: Mohammad Oli Ahad 

Headquarters: Dhaka, Bangladesh

Industry: Technology, Information and Internet

Intelligent Machines is a startup that leverages artificial intelligence (AI) and advanced analytics to help businesses improve operations. They offer AI products such as computer vision, fraud detection, audio recognition and precision marketing analytics. The company’s mission is to create local AI solutions for regional challenges and to prevent brain drain from Bangladesh. Intelligent Machines offers unlimited leave, performance-based salaries and leadership opportunities for undergraduates with a unique work culture.

Paperfly

Founded in: 2016

Founded By: Shahriar Hasan

Headquarters: Dhaka, Bangladesh

Industry: Ecommerce & Retail

Paperfly is one of Bangladesh’s top e-commerce delivery companies that helps online businesses send their products to customers easily and quickly across the country. It provides simple, fast, and reliable delivery services, making sure parcels reach customers safely and on time, so online sellers can focus on growing their business without worrying about logistics.

ShopUp

Founded in: 2017

Founded by: Navaneetha Krishnan Jaganathan, Sujayath Ali, Afeef Zaman, Ataur Rahim Chowdhury and Siffat Sarwar

Headquarters: Dhaka, Bangladesh

Industry: Ecommerce & Retail

ShopUp is a business-to-business (B2B) platform from Bangladesh that helps small shop owners run their businesses more easily. It allows them to buy products in bulk, get fast delivery to their shops, access digital credit and pay later (BNPL), and use simple tools to manage their business.

Conclusion

The Startup Ecosystem of Bangladesh is blooming due to digitization, changes in demographics, and supportive government policies. However, challenges like limited funding access and complex regulations persist. There's a mixed perception of startups, with some outsiders believing founders are exploiting investors, but the country is still accelerating the pace of startup investments in the country.

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