Sary, the largest B2B marketplace and services platform in Gulf, is merging with ShopUp, Bangladesh’s most funded start-up, in a deal expected to facilitate the entry of Bangladeshi products into the Saudi Market.
Both companies essentially connect micro, small and medium-sized businesses with a network of wholesalers and manufacturing brands to procure supply efficiently.
ShopUp is the largest organised distributor of fast-moving consumer goods in Bangladesh, operating more than 200 hubs across the country. Sary has operations in Saudi Arabia, Egypt and Pakistan.
There are more than 30 lakh Bangladeshis living in Saudi Arabia and they play a massive role in the Bangladesh economy, according to ShopUp.
“Not just Saudi Arabia — very soon, we plan to launch across other countries in the Middle East,” ShopUp top official said.
In the next decade, the Gulf–South Asia trade corridor is expected to become one of the world’s most significant routes, handling over $682 billion worth of trade.
“ShopUp wants to seize this opportunity and evolve into a global company,” ShopUp official added.
The merged outfit will be called the Silq Group and the strategic merger is backed by a $110 million (about Tk 1,300 crore) funding round led by Sanabil Investments, a wholly owned company of Saudia Arabia’s Public Investment Fund (PIF), and Peter Thiel’s Valar Ventures, according to ShopUp.
The funding round includes equity financing as well as a financial facility for Silq Financial, Silq Group’s planned dedicated financing arm focused on advancing innovations in SME funding.
“Through this merger, we’re entering what’s set to become one of the world’s largest trade corridors—projected to reach $682 billion. We’re in the front seat to serve some of the most exciting, fast-growing economies that are set to shape global consumption in the coming decades, giving them greater access to products from around the world.” said Afeef Zaman, CEO of SILQ Group.
“SILQ is poised to become a leading B2B commerce player both regionally and globally. It addresses numerous challenges faced by B2B businesses seeking a fully integrated platform that combines financial, logistics and commerce services. This merger will enhance SILQ’s depth, expertise and scale. We remain committed to supporting the company’s leadership to ensure this merger benefits all stakeholders,” said a spokesperson at Sanabil Investments.
ShopUp did not disclose when the deal was closed.
Both the ShopUp and Sary brands will continue to operate in their respective geographies under their respective brand names post-merger while leveraging Silq’s enhanced infrastructure, combined capabilities and shared resources.
Zaman will now serve as the CEO of Silq Group, while Sary’s founder and CEO, Mohammed Aldossary, will take charge as CEO of Silq Financial.
ShopUp’s co-founder, Ataur Rahim Chowdhury, will become ShopUp (Bangladesh) CEO and lead the Bangladesh business.
“By merging our strengths, we are not just expanding our reach — we are revolutionising how digital commerce serves merchants across the GCC [Gulf Cooperation Council] and Emerging Asia,” said Mohammed Aldossary, CEO of Silq Financial.
All of this is in service to SMEs that have traditionally been an underserved and untapped community, despite their significant contributions to their respective markets, he added.
The merger reflects a bold vision to place the markets at the centre of a new commercial ecosystem connecting with South Asia, said James Fitzgerald, founding partner at Valar Ventures.
This would be Sanabil’s first-ever investment in South Asia. The other investors include Flourish Ventures, Kuwait’s state-owned Wafra and Qatar’s state-owned Qatar Development Bank.
+ There are no comments
Add yours