Online retailer Daraz, which has presence in Pakistan Daraz.pk, Bangladesh Daraz.bd and Myanmar shop.com.mm, has secured EUR50 million ($55 million) in its first major financing round.
The investment comes from the CDC Group, the UK Government’s Development Finance Institution (DFI) focused on supporting and developing businesses in Africa and South Asia – as well as Daraz’s existing investor Asia-Pacific Internet Group (APACIG).
Founded in Pakistan in 2012 as an online fashion business, it has since then has expanded its business model to a general marketplace for quality brands within electronics, home appliances, fashion and many other categories.
The company said the funding will be used to continue to grow the business in existing markets and for expansion into other frontier markets in Asia.
“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,” said Bjarke Mikkelsen, CEO of Daraz. “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”.
Daraz is part of APACIG, a joint venture between German internet platform Rocket Internet and Qatari telecommunications provider Ooredoo which began its operations in the region early in 2014.
Today, it is one of the fastest growing internet platforms in the region, currently 14 e-commerce companies in 15 countries.
Hanno Stegmann, CEO of APACIG, said Daraz is one of the most promising companies in their portfolio.
Last month, it announced today an ambitious plan to launch one new startup company every three months, which it says is part of the strategy to build one of the largest Internet platforms in the APAC region.
The first company to be launched as part of the strategy will be online beauty marketplace Vaniday, starting in Australia. The marketplace offers curated selection of offers and can book treatments such as massages, hair appointments and manicures.
