Online ride-hailing and ticketing platform Shohoz yesterday announced it has raised $15 million from Golden Gate Ventures of Singapore to expand its business.
However, both Shohoz and Golden Gate Ventures declined to give the number of shares the investor will receive in exchange of the fund.
Jeffrey Paine, founding partner of Golden Gate Ventures, said the Singaporean company has received a minority stake in Shohoz through the investment and will sit in the board of the company.
At a press conference at the Pan Pacific Sonargaon Hotel in Dhaka, the ride-sharing startup officially announced the development and said the fresh capital will be used for customer acquisition and retention of the ride-sharing business as well as for expanding other on-demand car services.
“Our market is ready for a thriving ride-sharing and related businesses and within a short time we will move beyond Dhaka to expand our service across the country,” said Maliha Quadir, founder and managing director of Shohoz.
“This additional money will be helpful to expand and make new acquisition.”
Shohoz began its journey four years ago with some angel investment and started the ride-sharing service in January this year. It is the market leader in e-ticketing.
In the ride-sharing business, Shohoz's focus is on the bike segment. It rolled out the car-sharing service last week.
It is now working to introduce insurance for both riders and passengers within a short time, said Maliha.
She said the venture is planning to roll out the on-demand car service although the bike-sharing will remain its priority.
“Motor bikes will help reduce traffic congestion in Dhaka and make city-dwellers life faster and smoother.”
Paine said Golden Gate Ventures has interests to invest more in Bangladesh, especially in the tech-related startups.
He said Bangladesh has all the indicators of a country poised for tremendous growth: increasing digitisation of consumer services and rising consumer purchasing power. Golden Gate Ventures is an early-stage venture capital firm investing across Southeast Asia.
Since 2011, the firm has invested in more than 30 companies in a number of countries in Asia. It invests in internet and mobile startups in sectors such as e-commerce, payments, marketplaces and mobile applications, according to the company's website.