New Delhi, April 26: Bangladesh’s once-thriving startup ecosystem is under pressure due to a significant decline in funding. According to a recent report, companies are scaling back operations, and many prominent firms are struggling to meet basic responsibilities, such as paying their employees.
The crisis emerged in early March when hundreds of workers protested outside the office of ‘Chaldal’ in Jashore due to unpaid salaries. Some employees claimed they had not received their wages for four months.
This incident has raised new concerns about the health of a sector once seen as a symbol of the country’s digital and economic rise.
Founded in 2013, ‘Chaldal’ became a leading player in Bangladesh’s online grocery delivery sector, becoming a household name in urban areas.
The report indicates that the company raised approximately $40 million in funding between 2015 and 2025, rapidly expanding, particularly during the COVID-19 pandemic when its annual revenue soared to $55 million.
The challenges faced by ‘Chaldal’ reflect a broader downturn in the startup ecosystem. This sector flourished in the 2010s with the rise of companies like ‘bKash’, ‘ShopUp’, ‘Pathao’, and ‘Sohaj’.
During this period, global companies like Uber and Foodpanda also entered the Bangladeshi market, driven by increasing digital adoption and a strengthening economy.
At its peak, Bangladesh had over 1,200 active startups, with around 200 new startups launching each year.
Since 2010, the sector has attracted more than $1.12 billion in funding, primarily from foreign investors.
The peak year was 2021, when startups secured over $434 million through 94 deals, including a significant $250 million investment in ‘bKash’ from SoftBank.
However, a rapid decline followed. By 2024, annual funding had plummeted to just $42 million across 41 deals. In 2025, only 12 deals were completed, raising approximately $124 million.
Notably, nearly all of this funding came from a single deal worth $110 million, which supported the Salki Group formed from the merger of ShopUp and Saudi-based Sari.
Industry insiders suggest that this decline is due to pressures from both global and domestic fronts.
Wasim Aleem stated that the company had never faced difficulties in paying salaries in the past 12-13 years until August 2025. Meanwhile, Fahim Ahmed noted that the condition of startups has been steadily deteriorating over the past two years, as highlighted in the report.
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My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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