Company eyes Nasdaq listing in five years

Staff Reporter:

ShopUp’s largest business unit, Mokam CPG (Consumer Packaged Goods), became net profitable in June 24, said officials of the successful startup at press meet in the city on Sunday.

Afeef  Zaman, the Founder and CEO of the startup also said that they eyed Nasdaq listing within five years. “We help connect manufacturers with retailers. Sixty-five percent of our investors are foreign, which is why we dream to be listed on Nasdaq” he said.

One notable investor in ShopUp is Peter Thiel, known for his early investment in Facebook, where he turned a $500,000 investment into $1 billion.

Mamun Rashid, president of ShopUp, noted that they have connected with over 310 million people through a vast network of small shops, with a target to increase this to 80 million.

ShopUp officials informed that Mokam, mainly focused on the B2B distribution of FMCG products and services, generated more than BDT 2,000 crore in revenue with BDT 26 crore in operating profit for FY 23-24, marking over 6 times year-over-year growth.

Mokam CPG is the largest distribution platform in Bangladesh, operating more than 200 distribution centers nationwide. It is currently serving major local and international brands like Marico, Unilever, Robi, Banglalink, JTI, Lafz, Remedist, Elite, ACI, Grameenphone, Himalaya, Meghna Group of Industries, New Zealand Dairy, Olympic, Reckitt, RSPL Group, Square Food and Beverages Limited, Square Toiletries Limited, Syngenta, TK Group, and many more.

“We are creating the largest distribution platform for FMCG goods in Bangladesh. Our heavy investment in R&D and top talent over the past three years is paying off. This is just the beginning of the distribution revolution we aim to lead,” said Nazir Ahmed, CEO of Mokam CPG.

Over the past three years, Mokam CPG identified significant gaps in traditional FMCG distribution methods. By developing technology to address these gaps, ShopUp significantly reduced its inventory holding period compared to traditional distributors, resulting in faster cash cycles.

The company also announced that businesses have generated 3,300 crore in revenue and 95% of this is PBT (Profit Before Tax) positive. The numbers are based on unaudited management financials of ShopUp entities of 2023-24. The overall group is on track to become net profitable soon.

Chief Product Officer Ataur Rahim Chowdhury, Chief Business Officer Sujayath Ali also spoke at the press meet.