Bangladeshi taxi app startup raises seed funding from Turkish investors

Photo credit: Emanuele

BDcabs, an on-demand “dispatch system” which helps connect passengers seeking rides in Bangladesh, announced today that it has secured an undisclosed amount of seed capital from Turkish startup accelerator Etohum. The investment values the company at US$6.5 million.

Etohum, a seed fund and accelerator headquartered in Istanbul, Turkey invests in startups globally and has funded 28 of them to date. It is also known for its annual Startup Istanbul pitch event, which helps bring together some of the leading startups in the Eurasia region. BDcabs was a participant in Startup Istanbul 2015, where it was declared by judges among the top 5 exhibiting startups.

BDcabs functions a little differently from the likes of Uber. When a user requests a ride, they’ll be shown several options, depending on their estimated travel distance and whether they need a ride immediately or later. It works with metered taxis as well as private vehicles. Think of it as a marketplace with on-demand features.

The startup takes a cut from each ride processed through its system and has also licensed its software for use by private fleet operators, such as Toma Taxi.

According to an emailed press release, this investment is the first of its kind by Etohum in Bangladesh. The cash will be used to significantly expand operations, with the aim of covering 50,000 hire vehicles in the country.

See: Homegrown startups are catering to Bangladesh’s on-demand taxi boom