COVID-19 Impact on the Startups of Bangladesh

LightCastle Analytics Wing
May 9, 2020
COVID-19 Impact on the Startups of Bangladesh

Since March 2020, Bangladesh is experiencing the wrath of the COVID-19 pandemic. As businesses shut down due to the lockdown, the entire startup ecosystem has been shaken to its core, threatening thousands of startups that create over a million jobs.

To understand the impact further, LightCastle Partners commissioned an independent study – “COVID-19 Impact on the Startups of Bangladesh”. The survey was conducted in late April with responses from over 200 startups from Bangladesh.

Bangladesh Startup Ecosystem at a Glance: 

  • There are over 1,000 startups in the ecosystem currently providing employment to an estimated 1.5 million people. 
  • As of today, Bangladeshi Startups have attracted over US$200 million in international venture capital.
  • Currently, the most popular growth sectors in Bangladesh are Logistics, Ride Sharing, and Fintech.

The analysis found that:

  • 24% of businesses have stopped complete operation, with 56% of startups saw at least a 50% drop in revenue generation
  • 60% of Startups have a runway of less than 3 months, threatening 1.5 million employment
  • US$56 million annual loss is now feared by a total of 300 startups in 2020

To learn more insights, visit the full report below:

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WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a data-driven approach to create opportunities for growth and impact. We consult and collaborate with development partners, the public sector, and private organizations to promote inclusive economic growth that positively changes the lives of people at scale. Being a data-driven and transparent organization, we believe in democratizing knowledge and information among the stakeholders of the economy to drive inclusive growth.

For further clarifications, contact here: [email protected]

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