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, according to Honourable State Minister for Posts, Telecommunications and Information Technology, Zunaid Ahmed Palak.
At the same time, Nagad has contributed BDT 14.5 crore to the government’s revenue earnings over the last four years, he noted.
The honourable state minister made these remarks on Monday evening at the inauguration ceremony of the newly elected board of directors of the Bangladesh Association of Software and Information Services (BASIS).
“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 14.5 crore in revenue with the government,” the honourable state minister elaborated.
Earlier, at another programme, the Honourable State Minister emphasised that with the government’s encouragement for public-private partnership, Nagad’s collaboration with the Postal Department has not only allowed the former to provide affordable services to customers, but 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 BDT 5.5 crore in revenue with the Postal Department under their revenue-sharing
agreement.
Highlighting the role of the Postal Department and Honourable State Minister Zunaid Ahmed Palak in Nagad’s rise, Tanvir A Mishuk, founder and CEO of Nagad Ltd., said, “The Postal Department has supported us from the beginning, and Palak Bhai has been by our side since our inception. Whenever we face a problem, he helps us resolve it quickly.”
Mentioning special loan facilities for all BASIS members once Nagad Digital Bank goes into operation, Tanvir A 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 BDT 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 BDT 3.32 crore and the figure rose to BDT 4.5 crore in the following year – 2022. In the latest contribution, Nagad shared BDT 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 Honourable Prime Minister Sheikh Hasina.
