ShopUp, Bangladesh’s leading B2B commerce platform, has raised $6.5 million in debt capital funding from Saison Investment Management Private Ltd (SIMPL), the credit venture arm of Japan’s Credit Saison. This investment marks SIMPL’s first foray into the Bangladeshi market, demonstrating strong confidence in ShopUp’s potential to drive economic growth and enhance financial inclusion in the region.
Growth and Expansion Plans:
1. Building a Fully Local Supply Chain:
ShopUp plans to leverage this capital to advance its goal of creating a fully local supply chain through technology. By embedding financial solutions directly within its platform, the company aims to simplify transactions for businesses, enabling them to grow more efficiently without the traditional complexities of financing. This strategic approach is expected to boost the scalability and efficiency of retailers within the ShopUp ecosystem.
2. Empowering Retailers and Expanding Operations:
The funding will empower retailers on the platform to expand their product offerings and scale their operations. ShopUp’s ecosystem, which integrates financial services into its B2B commerce platform, provides retailers with the tools they need to manage and grow their businesses more effectively. This capital infusion will support retailers in reaching a broader customer base and enhancing their market presence.
3. Enhancing Economic Impact:
ShopUp’s vision is to bring transparency to the food and consumer goods value chain in Bangladesh. The company is committed to impacting the lives of millions who spend a significant portion of their income on essential goods. According to Afeef Zaman, founder and CEO of ShopUp, the company is determined to reach eight crore (80 million) people, emphasizing the importance of this mission in improving economic conditions for a substantial portion of the population.
4. Expanding Financial Inclusion:
The integration of financial solutions within ShopUp’s platform is a key element in promoting financial inclusion. By simplifying access to financing for small and medium-sized enterprises (SMEs), ShopUp is helping to bridge the gap in financial services for businesses that have traditionally been underserved. This initiative aligns with the broader goals of economic empowerment and sustainable growth in Bangladesh.
Background on Credit Saison and SIMPL:
Credit Saison, recognized as the third-largest credit card issuer in Japan with over 20 million cardholders, has a strong track record in providing diverse lending solutions across consumer, corporate, and MSME finance. The company’s expansion into emerging markets, including Brazil, India, Indonesia, Mexico, Thailand, and Vietnam, has been supported by its ability to leverage local data infrastructure and adopt innovative lending models. This investment in ShopUp signifies Credit Saison’s commitment to fostering growth in Bangladesh’s burgeoning B2B sector.
