1.2K    

International Startup

MoMagic is trying to build the Flipkart of Bangladesh.

19th, July 2017    -    International Startup

MoMagic is trying to build the Flipkart of Bangladesh. 

Though the market condition for Ecommerce in India is not good, this Startup took leap and started their operation in Bangladesh which is new territory for E commerce players. 

The Noida-based company had formed a joint venture with handset maker Symphony to first enter Bangladesh in 2012. MoMagic, which uses its technology platform as a key tool to connect consumers with businesses, helped the local company market its products. Subsequently, three years later, it decided to get into a 40-60 partnership with Symphony to launch its e-commerce arm. For the next few months the company carried out on-ground surveys and market research to test the waters as the local payments market was still unstructured and the regulatory framework was yet to be formed. Finally, Pickaboo went live in May 2016.

According to source besides Symphony’s huge presence in the local market, Bangladesh’s growing mobile penetration and its clout in the use of mobile internet was a plus when it came to the decision of launching an online marketplace. 

However, since the Bangladeshi buyer still has apprehensions about buying products online, the company is trying out different things to establish Pickaboo as a true marketplace.

The company currently offers deals in only electronics and appliances, a common choice for any new e-commerce marketplace, while Daraz sells products across categories. The Bangladeshi market is so new, that I do not think it is big enough to have a No.1 or a No. 2. We are still building the initial market, and there are hardly any other formidable players.

MoMagic has committed to spend $2-3 million in the venture, and has already spent $1.5 million. The commerce firm is now looking to raise $10 million for expansion. While it burns $100,000-$120,000 every month, the company claims to have gross margins of 5-6% on every order, though net margins are in the red.

Categories: Startup Event , Startup , Startup community , News , Food tech , Legal tech startup , HR Tech , Tech Startup , Guest blog , Featured entrepreneur , Startup funding , FinTech , International news , Analytics , Product review , Social enterprise , Health care , My journey , Co working space , Fashion , Sponsored , F&B