Startup funding in Bangladesh saw a remarkable increase in the first half of 2025, driven primarily by a significant merger and acquisition deal involving a local and a global company. The total funding reached nearly $119.9 million, a substantial rise from the $9.9 million recorded during the same period last year. This surge was largely due to a $110 million strategic merger between Bangladesh’s B2B commerce platform ShopUp and Saudi Arabia-based Sary, leading to the creation of SILQ Group. This merger accounted for over 90% of the total capital raised.
The deal is the second largest since the bKash-SoftBank investment in 2021 and has significantly influenced the funding landscape, bringing total startup investments to $120 million across nine deals. Other sectors that received funding include Ecommerce & Retail, Education Technology, and Enterprise Solutions. However, initial or seed funding was notably low, with no activity in debt, pre-Series A, and Series A rounds, contrasting sharply with the previous year when pre-Series A captured 40% of total funding.
Venture capital dominated the investment landscape, contributing $117 million or 98% of the total funding. Industry experts stress the need for enhanced efforts to support the local startup ecosystem, as most funding still comes from international investors. There is an emphasis on better access to working capital and incentives to encourage local investment. Additionally, fostering stronger ties between industry and academia and providing targeted support for game development and esports are seen as crucial steps forward.
