Daraz, an online retailer in Asian frontier markets, has secured 50 Million Euros (approximately $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).
Daraz is currently operating with its e-commerce or online retail services in Pakistan, Bangladesh and Myanmar. Initially started with online fashion business in Pakistan three years ago in 2012, Daraz.pk later expanded its business to a general marketplace for various brands in electronics, home appliances, fashion and many other categories.
The funding will be used to continue to grow the business in existing markets and for expansion into other frontier markets in Asia.
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.
Daraz is part of the Asia Pacific Internet Group (APACIG), one of the fastest growing internet platforms in the Asia-Pacific region, currently uniting 14 e-commerce companies in 15 countries.
Hanno Stegmann, CEO of APACIG, explains that Daraz is one of the most promising companies in their portfolio.
The markets where Daraz is active are inspiring for entrepreneurs. We are looking forward to supporting Daraz in its ambition to become the No. 1 shopping destination in Asian frontier markets.
David Osborne, CDC’s Investment Director, reassured as:
“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”.
