SWAP closes U$1.25M in Seed Funds with help from Bangladesh Angels & partners
Bangladesh’s first re-commerce platform raises U$1.25M in Seed Funds, led by Accelerating Asia with participation from ZA Capital Advisory, Bangladesh Angels Network and Southeast Asian angels
Bangladesh is the 8th largest market for mobile phone users, resulting in an upward growth in e-waste generation. SWAP, as the first ever re-commerce platform in Bangladesh, solves the problem by offering customers both convenience and safety while ensuring guaranteed selling of old electronics and increasingly other big ticket items from their doorstep in less than 24 hours. By doing this, SWAP provides consumers with an avenue to affordably trade up to new products while ensuring they can trade in their old products.
SWAP operates as a C2B, B2B and C2B2C marketplace where customers can buy, sell or swap used electronics and automobiles. Users can use a host of platforms, payment methods and service fulfillment options all while ensuring reliability and affordability. The platform enables many low-income earners to purchase, sell and exchange products – increasing economic participation and technology accessibility. The addressable market is estimated to be over U$3 billion in Bangladesh.
It is also working with some of the largest brands in the country to offer national trade-in schemes for new and refurbished phones and other electronics. Consumers can avail certified pre-owned products for as low as 60% of retail value with a full year warranty and insurance coverage including liquid and accidental damage. SWAP’s network has also enabled over 3,000 last mile agents in Bangladesh with additional an income source buying and selling products through SWAP and providing logistics for its exchange program.
Since starting in 2020, SWAP has generated more than U$14.5M in Gross Merchandise Value (GMV), with a current monthly GMV of over USD$1.7M. SWAP has served over 40,000 customers till date and is poised to scale-up significantly in the next 6-12 months.
With a mission to be the topmost, reliable re-commerce platform, SWAP aims to become a market leader and a global example for circular economy ventures and sustainable e-waste management. The company estimates that it has helped consumers and brands to reduce 1100MT of carbon emission and save more than 65 metric ton of e-waste in Bangladesh.
The new injection of fund and investment will enable SWAP’s growth and contribute to its mission: “We want to be Bangladesh’s most trusted platform for anyone trying to buy, sell or exchange in Bangladesh. We believe we can do that by providing our customers with as many choices as possible with most affordable plans, from which they can pick the ideal one for them,” SWAP CEO and Co-Founder Parvez Hossain said.
As the lead investor, Accelerating Asia sees the potential in SWAP and the founding team to deliver returns for the early-stage VC accelerator that operates across Southeast and South Asia.
“SWAP is perfectly positioned at the intersection of ecommerce and circular economy, helping the aspiring middle classes in emerging economies access modern technologies while minimising the impact of digital waste through recycling of used devises. Parvez and the team have proved to have the right mix of skills and experience to execute on this model. We look forward to seeing SWAP continue its rapid business expansion for years to come,” Accelerating Asia General Partner Craig Bristol Dixon said.
Zahedul Arefin, Founder and CEO of ZA Capital Advisory and also Advisor to SWAP mentioned “SWAP has the potential to build the ecosystem for the circular economy of Bangladesh by connecting the nexus of e-waste, retailers, consumers and ensuring reusability and affordability for the mass. We are happy to be associated with one of the most promising and innovative online startups of the country.”
Nirjhor Rahman, CEO of Bangladesh Angels Network, adds: “Parvez Hossain is one of the most focused CEOs I came across. He and his team are well-placed to dominate this growing market for re-commerce for electronics, while mobilizing its massive customer and agent network to move into new product categories and verticals including potentially buy-now-pay-later. We are very pleased to co-invest alongside our good friends and partners at Accelerating Asia and ZA Advisory, in one of our largest rounds to date, and bringing along a group of angels experienced in consumer tech, finance and trading and distribution.”