Bangladesh’s startup ecosystem is facing challenges as funding diminishes, leading to companies reducing operations and struggling to meet financial obligations like paying salaries. A recent report highlighted the crisis, which gained attention in early March when employees protested outside Chaldal’s Jashore office due to unpaid wages, some claiming up to four months of non-payment. This situation has sparked concerns about the well-being of a sector that was once a symbol of the country’s digital and economic advancement.
Chaldal, established in 2013, was a trailblazer in online grocery delivery in Bangladesh, gaining popularity in urban areas. The company secured approximately $40 million in funding between 2015 and 2025, experiencing significant growth, especially during the Covid-19 pandemic, with annual revenue reaching $55 million. However, Chaldal’s challenges mirror a broader decline in the startup ecosystem, which thrived in the 2010s with the emergence of companies like bKash, ShopUp, Pathao, and Shohoz.
During its peak, Bangladesh boasted over 1,200 active startups, with nearly 200 new ventures launching annually. The sector attracted more than $1.12 billion in funding since 2010, primarily from foreign investors. In 2021, startups raised over $434 million across 94 deals, including a substantial $250 million investment in bKash by SoftBank. Nevertheless, the momentum has waned significantly, with annual funding plummeting to $42 million in 2024 across 41 deals, and in 2025, only 12 deals totaling around $124 million were recorded.
Most of the recent funding came from a single $110 million deal supporting SILQ Group, a result of the merger between ShopUp and Saudi-based Sary. Industry leaders attribute the downturn to a combination of global and local pressures. Waseem Alim highlighted that salary payment issues were unprecedented for the company until August 2025, while Fahim Ahmed mentioned that startups have been grappling with increasingly challenging conditions over the past two years.
