Daraz, an online retailer in Asian emerging markets, has secured around $55 million. 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). The funding will be used to continue to grow the business in existing markets and for expansion into other frontier markets in Asia.
Daraz is an eCommerce platform that operates in Pakistan, Bangladesh and Myanmar (operating as shop.com.mm). The company started in Pakistan in 2012 as an online fashion business, but since then it has expanded its business model to a general marketplace for brands within electronics, home appliances, fashion and many other categories.
“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,” said Bjarke Mikkelsen, CEO of Daraz about the mission of his business.
The company is part of Rocket Internet and Ooredoo’s joint venture Asia Pacific Internet Group (APACIG), a group currently uniting 14 eCommerce companies in 15 countries.
Regarding the reason for investment, David Osborne, CDC’s Investment Director added that, “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”.