Startup funding in Bangladesh surged to $119.9 million in the first half of 2025, marking a nearly twelvefold rise from $9.9 million during the same period last year, according to data from LightCastle Partners.

The sharp jump was primarily driven by a single $110 million strategic merger and acquisition (M&A) deal between local B2B commerce platform ShopUp and Saudi-based Sary.

The merger led to the formation of SILQ Group and accounted for over 90% of the total capital raised during the period.

This deal is the second-largest in Bangladesh’s startup history, following the bKash-SoftBank investment in 2021.

It also redefined the funding landscape, with total investment reaching $120 million across just nine deals, spanning sectors such as e-commerce, education technology, and enterprise solutions.

Despite the headline figure, early-stage funding remained stagnant. No investments were recorded in debt, pre-Series A, or Series A rounds in H1 2025, contrasting sharply with last year when pre-Series A funding made up 40% of the total.

Venture capital dominated the funding mix, contributing $117 million, 98% of the total raised.

Rahat Ahmed, founder of Anchorless Bangladesh, warned that the ecosystem remains overly reliant on foreign capital.

“About 93% of funding still comes from international investors,” he said, stressing the need for better local support, improved access to working capital, and stronger engagement with institutional investors to drive growth beyond high-profile deals.