Daraz has closed $56 million in its first ever funding round. The valuation and size of the current business weren’t disclosed.
Daraz Group operates its ecommerce businesses in Pakistan, Bangladesh and Myanmar, three markets where ecommerce is in its nascent stages. Starting back in 2012, it has gained major traction and is likened to Amazon for these developing markets.
This new funding will help the group grow its operations in all markets where it operates and to expand into new frontier markets.
The funding round was primarily led by the CDC Group, a development finance institution owned by the UK government alongside Asia Pacific Internet Group, which is Rocket Internet’s regional investment group.
David Osborne, Investment Director at CDC, said:
Daraz is rapidly building an online trading infrastructure across a number of South Asia’s most challenging frontier markets. CDC’s investment will enable the company to continue its impressive growth. We expect our investment to help Daraz create several thousand direct and indirect jobs over the next 5 years, and play an important role in the professionalization and development of local retail sectors, logistics networks and technology industries.
Bjarke Mikkelsen, CEO of Daraz, said:
Taking the e-commerce business model into these exciting markets is a fascinating journey. Although internet penetration is still relatively low, the market is developing fast and its potential is immense. By making Daraz a success, we are not only building a great business, but also creating jobs and infrastructure in the countries we operate in – that’s what makes it so exciting.
Hanno Stegmann, CEO of APACIG, said:
The markets where Daraz is active are inspiring for entrepreneurs; though internet penetration is extremely low and online shopping is still a new trend, the growth and potential are unique.