Nagad becomes successful unicorn startup within 3 years

DHAKA, Bangladesh, May 24, 2024 /PRNewswire/ -- Within just three years of its inception, Nagad, a leading mobile financial service provider based in Bangladesh, has established itself as the most successful startup unicorn in the country, according to State Minister for Posts, Telecommunications and Information Technology (ICT) Zunaid Ahmed Palak.

At the same time, Nagad has contributed BDT 145 million – equivalent to more than $1.2 million – to the government's revenue earnings over the last four years, he noted.

The state minister made these remarks at an event of the Bangladesh Association of Software and Information Services (BASIS), the national trade body for the software and IT-enabled service industry.

"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 BDT 145 million in revenue with the government," the honourable state minister elaborated.

Highlighting the role of the Postal Department and State Minister Zunaid Ahmed Palak in Nagad's rise, Tanvir A Mishuk, founder and chief executive officer of Nagad Ltd., said, "The Postal Department has been supporting us since the beginning of our journey, and the ICT minister has also been by our side since then. Whenever we face a problem, he helps us resolve it quickly."

Nagad is now going to launch a digital bank within a few months, which will offer all financial services on a single digital platform.

Mentioning special loan facilities for all BASIS members once Nagad Digital Bank comes into operation, Tanvir A Mishuk pointed out, "BASIS plays a crucial role in shaping policies in our IT sector. I request that they contribute to policy updates as per requirements. 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 getting 51% of Nagad's income.

The Postal Department received BDT 11.2 million, equivalent to over $95,000, in 2020. As Nagad's services went on expanding and its customer base continued to grow, the department's revenue also increased proportionally. In 2021, Nagad's contribution amounted to BDT 33.2 million, equivalent to more than $2,83,000, and the figure rose to BDT 45 million, equivalent to nearly $3,84,000 in the following year – 2022. In the latest contribution, Nagad shared BDT 55 million, equivalent to nearly $4,70,000, with the department from its income generated in 2023.

In 2023, Nagad received the "Fastest to Unicorn Award" from Honourable Prime Minister Sheikh Hasina.

About Nagad Ltd (https://www.nagad.com.bd/)

Nagad Limited is one of the leading MFS operators in Bangladesh's payment industry with 95 million registered customers and an average daily transaction of more than USD 153 million. The digital payment platform, known as a successful public-private partnership between Bangladesh Postal Department and the private sector, was inaugurated in 2019 by Honourable Prime Minister Sheikh Hasina of the people's republic of Bangladesh.

Contact:
Lincoln Md. Lutforzaman Sarker
Assistant Vice President (AVP), 
Media and Communications, Nagad Limited.
Email: Lincoln.lutforzaman@nagad.com.bd

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