Bangladesh start-ups are turning out to be a favourite investment destination for foreign private equity and angel investors. A report by Dhaka Tribune revealed that 94.3 per cent of the funding managed by Bangladeshi start-ups over the past decade came from abroad.
The news organisation quoted a report ‘Bangladesh Startup Ecosystem: Funding Landscape' by LightCastle Partners and said that of the $317 million received since 2010, only $18 million was from local sources.
“After a slow spell last year for the pandemic, start-up funding in Bangladesh has picked up pace this year,” the newspaper said, adding that in the first two months of the year, start-ups have elicited $23.74 million in contrast to the $37.1 million received in 2020.
“We have to show significant improvement in the parameters for ease of doing business to boost investors' confidence,” said Dhaka Tribune quoted as Adnan Imtiaz Halim, founder and chief executive officer of Sheba.xyz, a marketplace for home services, as saying.
Most foreign investors in the Bangladeshi start-ups have opted to register their companies in Singapore for the ease of dispute resolution in case of trouble over investment, the news organization said.
Earlier, at the India-Bangladesh Business forum, Bangladesh Prime Minister Sheikh Hasina urged the Indian businesses to participate in the country’s startup eco system.
Besides, startups, India is also keen to invest in other areas.
Meanwhile India and Bangladesh have committed to increasing co-operation. Union minister Piyush Goyal at the 'Prarambh: The Startup India International Summit' underlined the need for Indian investors to look at BIMSTEC nations and increase participation in the startups there.
Bilateral activities including economic collaborations in various sectors between New Delhi and Dhaka are also expected to rise significantly in the coming months. While Prime Minister Narendra Modi and Hasina held a bilateral summit in December, the Indian leader is now slated to visit Dhaka to take part in the celebrations marking 50 years of Bangladesh independence.
