21 May 2024, 16:43

Nagad becomes successful unicorn startup within three years: Palak

DHAKA, May 21, 2024 (BSS) - Within just three years of its inception, Nagad, a leading mobile financial service provider in Bangladesh, has established itself as the most successful startup unicorn in the country, said State Minister for Posts, Telecommunications and Information Technology, Zunaid Ahmed Palak.

At the same time, Nagad has contributed Taka 14.5 crore to the state coffer over the last four years, he noted.

The state minister made these remarks yesterday evening at the inauguration ceremony of the newly elected board of directors of the Bangladesh Association of Software and Information Services (BASIS), said a press release today.

"Nagad is a partner of our Postal Department. Leveraging the infrastructure, workforce, and policy support of this department, they have become a successful startup unicorn within three years, while also sharing Taka 14.5 crore in revenue with the government," he added.

Earlier, at another programme, Palak emphasized that with the government's encouragement for public-private partnership, Nagad's collaboration with the Postal Department has not only allowed the Department to provide affordable services to customers, but also it has generated revenue for the latter too alongside contributing to the country's move towards a cashless society and economy.

He noted that last year alone, Nagad shared over Taka 5.5 crore in revenue with the Postal Department under their revenue-sharing agreement.

Tanvir A Mishuk, founder and CEO of Nagad Ltd., said, "The Postal Department has supported us from the beginning, and the State Minister has been by our side since our inception. Whenever we face a problem, he helps us to resolve it quickly."

Mentioning special loan facilities for all BASIS members once Nagad Digital Bank goes into operation, Mishuk pointed out, "BASIS plays a crucial role in shaping policies in our IT sector. I congratulate and also request them that they contribute to policy updates as required. I promise that Nagad Digital Bank will provide collateral-free loans for all BASIS entrepreneurs."

According to the revenue-sharing agreement, the Postal Department is entitled to 51% of Nagad's income.

The Postal Department received Taka 1.12 crore in 2020. As Nagad's services have expanded and its customer base has grown, the department's revenue also has increased proportionally.
In 2021, Nagad's contribution amounted to Taka 3.32 crore and the figure rose to Taka 4.5 crore in the following year 2022. In the latest contribution, Nagad shared Taka 5.51 crore with the department from its income generated in 2023.

Inaugurated by Prime Minister Sheikh Hasina, Nagad embarked on its journey in 2019 based on an agreement with the Postal Department. In 2023, Nagad received the "Fastest to Unicorn Award" from Prime Minister Sheikh Hasina.

At the BASIS event yesterday, Prime Minister's Advisor for Private Industry and Investment Salman Fazlur Rahman; State Minister for Commerce Ahasanul Islam Titu; President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) Md. Mahbubul Alam; and President of BASIS Russell T. Ahmed also spoke.

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