CDC Group helps Daraz fashion $56m
Posted on 08 October, 2015 by Mark Chatterley, reporter
CDC Group invests in Pakistan, Bangladesh and Myanmar online shopping site Daraz to help it grow and to jointly create a code of conduct for its suppliers with regards to workers' rights.
Daraz, a Pakistan-based online clothing and jewellery store, has raised a €50m ($56m) series A round led by CDC Group, the development finance institution owned by the UK government.
CDC Group was joined in the round by the Asia Pacific Internet Group, a joint venture of Germany-based e-commerce group Rocket Internet and Qatar-based telecoms firm Ooredoo.
Founded in 2012, Daraz was incubated by Rocket Internet and operates a website for customers in Pakistan, Bangladesh and Myanmar to buy clothing, jewellery and electronic goods from local suppliers and international companies.
The funding will be used by Daraz to develop its supply chain and improve its IT systems.
CDC Group will also work with Daraz to jointly create a code of conduct for its suppliers to set standards and assure the adoption of workers' rights.
David Osborne, investment director for CDC Group, said: “Daraz is rapidly building an online trading infrastructure across a number of South Asia’s most challenging frontier markets. CDC’s investment will enable the company to continue its impressive growth.
“We expect our investment to help Daraz create several thousand direct and indirect jobs over the next five years, and play an important role in the professionalisation and development of local retail sectors, logistics networks and technology industries.”
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