Startup Bangladesh invests Tk5 crore in SWAP

Startup Bangladesh Ltd, the flagship venture capital company of the government's ICT Division, has decided to initially invest Tk5 crore in SWAP, the first ever online re-commerce platform in Bangladesh, says a press release.

Re-commerce refers to selling and buying used products at affordable prices usually at online marketplaces.

SWAP works by offering customers both convenience and safety when selling a product online while also ensuring an environment-friendly way to discard electronic waste. The platform enables many low-income households to purchase, sell and exchange products – increasing economic participation and access-to-technology in an emerging market like Bangladesh.

An agreement was signed recently between the organisations in the capital for investment in the pre-series A round. With the investment in SWAP, Startup Bangladesh has now partnered with 18 companies and made total investments worth Tk50 crore.

Cabinet Secretary Khandker Anwarul Islam as well as Startup Bangladesh Board of Directors Chairman and Senior Secretary of ICT Division NM Zeaul Alam were present at the event. Among others from Startup Bangladesh were Managing Director Sami Ahmed and Head of Portfolio Investment Hasan A Arif. On behalf of SWAP, CEO Parvez Hossain and COO Tonmoy Shaha were present.

Since starting in 2020, SWAP has generated more than $43 million in gross merchandise value. SWAP has served over 80,000 customers till date helping to avoid 3,650 tonnes of carbon emissions. It has also helped recycle more than 386 tonnes of electronic waste as part of its commitment to reduce carbon footprint and contribute to an environmentally sustainable ecommerce industry. 

Startup Bangladesh is the flagship venture capital fund of ICT Division. Under the guidance of Prime Minister Sheikh Hasina, Startup Bangladesh started its journey in March 2020 with an allocated capital of Tk500 crore.

During the SWAP investment announcement programme, State Minister for ICT Zunaid Ahmed Palak said, "Bangladesh has become a fertile land for startups and innovation. The present government is a strong believer in innovation and technology, and we believe startups are the change-makers and impact creators in society. To support these innovative businesses, the government has established the Startup Bangladesh venture capital company. I hope SWAP will leave a remarkable impact with the Tk5 crore investment."

"The work that SWAP is doing in the re-commerce industry is highly commendable and the investment from Startup Bangladesh Ltd will help it to be the leader of the industry. The ICT Division is working diligently to assist the emerging and growing startups of the country," said NM Zeaul Alam, chairman of Startup Bangladesh Ltd. 

"Startup Bangladesh aims to support homegrown startups to grow and reach heights that can help attract robust foreign investment. The local startup ecosystem is greatly influenced by prospective ventures like SWAP. With the right strategy and focus, SWAP will become a remarkable example for other aspiring sustainable startups," said Sami Ahmed, managing director, Startup Bangladesh Ltd.

"We believe that SWAP provides a solution that Bangladesh greatly needs. By building an ecosystem for pre-owned goods, we are providing our country's low-and-middle income households the opportunity to get quality goods at affordable prices while allowing for easy access to technology. By reusing and increasing the lifespan of electronic devices and light vehicles, we can also ease the pressure on the import of such goods, ultimately easing the stress on our dollar reserves," said SWAP CEO Parvez Hossain.