PriyoShop, Bangladesh’s leading B2B marketplace, has successfully raised $5 million in Pre-series A funding to impact more customers with embedded finance and expand the territory across Bangladesh. PriyoShop’s recent investment round, led by Century Oak Ventures, with participation from Evolution Ventures, Iterative, SOSV (Orbit Startups), GFR Fund, BonBillo, Accelerating Asia, South Asia Tech Partners, and Voltity. Participating investors came from San Francisco, Dubai, Indonesia, Thailand, Africa, and India—with many choosing to invest in Bangladesh for the first time, marking a significant milestone for the country’s startup ecosystem With this financial support, PriyoShop is positioned to introduce transformative solutions that will benefit businesses across various sectors. This diverse backing highlights confidence in PriyoShop’s mission by fueling substantial expansion and innovation.
PriyoShop plans to utilize the recently acquired funds to enhance its technological infrastructure, expanding its geographical reach while prioritizing the integration of innovative technologies. Focused on improving the shopping experience for small enterprises, PriyoShop aims to revolutionize the functioning of these businesses by seamlessly merging finance and technology. The objective is to facilitate easy procurement for small companies, ultimately ensuring their success in the market. With the allocated funds, PriyoShop is poised to equip small enterprises with the necessary tools, leveraging financial technology to reshape their operational landscape and foster growth.
Bangladesh’s market size is almost 200 billion USD and 97% of our country’s retail sales take place through informal retailers; e-commerce and modern retail play a smaller role. So, the majority of the retail transactions are actually taking place through neighbourhood shop retailers. But these shops are faced with a number of challenges like stockouts, earnings instability and lack of financing, factors that make it hard for their businesses to grow. PriyoShop has rapidly expanded, making a positive impact on its customers within a short period. Moving forward, PriyoShop will prioritize a growth strategy emphasizing cost efficiency, leveraging advanced technology, streamlined teams, and high-margin revenue streams. PriyoShop’s commitment to revolutionizing the B2B sector extends beyond just technology; it fosters collaboration and connectivity among businesses, fostering a more integrated and responsive marketplace. Through these initiatives, PriyoShop is ready to redefine the traditional B2B landscape, creating a dynamic ecosystem that benefits all stakeholders. PriyoShop aims to bring about even more positive transformations in Bangladesh’s supply chains.
PriyoShop B2B marketplace was started in July 2021 by Asikul Alam Khan and Dipty Mandal after the pandemic hit. PriyoShop bridges the gap between mom-and-pop shop owners, manufacturers, wholesalers and distributors. Operating on a robust assets-light marketplace model, PriyoShop also manages its own hubs to efficiently serve retailers. After the foundation, PriyoShop has experienced growth, demonstrating an impressive monthly revenue growth rate exceeding 14 times and a Gross Merchandise Value (GMV) growth of 36 times. PriyoShop is committed to addressing the widening gap between technology awareness and accessibility, a crucial challenge for the distribution business amidst challenges such as shrinking profit margins, complexities induced by inflation, and declining sales in various sectors. The company has diversified into new sectors, including HoReCa and Exclusive Partnerships, with plans to introduce a fintech ecosystem shortly. This ecosystem revolutionizes MSMEs’ financial landscape by providing streamlined access to institutions, personalized credit assessments, and efficient supply chain financing. With simplified, paperless processes and flexible credit options, it fosters revenue growth through optimized operations and enhanced customer loyalty, marking a significant leap forward for businesses seeking financial empowerment.
Asikul Alam Khan, Founder & CEO of PriyoShop, expressed his enthusiasm about the investment, stating, “We want to thank all the backers, team players, industry mates and all the well-wishers in this journey. This funding marks a central moment for PriyoShop and validates our commitment to empowering Micro, Small and Medium Enterprises (MSMEs) in Bangladesh. The capital will be strategically deployed to enhance our technology infrastructure, expand our reach, and introduce innovative solutions, including the upcoming fintech service. “ Asikul added about PriyoShop’s vision “We have made a great difference to the lives of small-business owners over the last two years. At present, we have roughly 50,000 merchants on our platform, and we expect to positively impact over 1 million merchants in the coming year.”
Quoc Phong Dang, CEO, Century Oak Ventures, states, “We are thrilled to support PriyoShop in their current funding round, as we are impressed by their robust business model and strong execution.”
Oscar Ramos, Managing Director, Orbit Startups, states, “PriyoShop’s customer-centric approach and relentless execution have enabled the company to emerge as a leading player in a competitive space. Team SOSV is proud and happy to be with PriyoShop.”
Brian Ma, General Partner from Iterative, said, “We are excited to continue investing in PriyoShop. Its asset-light model is uniquely positioned to transform the informal retail sector in Bangladesh.”
Founder Asikul Alam Khan emphasizes the critical role of supply chains in the economies of major South Asian and Southeast Asian countries, attributing around 60% of their GDP to these networks. He underscores the inevitability of modernization and digitalization for these supply chains to adapt and thrive in the evolving economic landscape.
PriyoShop through their PriyoShop Retail App and WhatsApp Marketplace solves this by providing a marketplace where MSMEs can source goods directly, which also keeps the prices of products competitive by removing the need for agents, and ensures the next-day delivery of goods. With all these facilities, PriyoShop helps MSMEs generate double-digit revenue. The startup has a partnership with LankaBangla Financing, a digital financial marketplace platform, to provide credit facilities to MSMEs.