Gulf-based B2B commerce leader Sary is joining forces with ShopUp, Bangladesh’s most capitalized startup, in a landmark merger aimed at facilitating the entry of Bangladeshi goods into the Saudi market.

Both companies specialize in connecting micro, small, and medium-sized enterprises (MSMEs) to a broad network of wholesalers and manufacturers, streamlining the procurement process for essential supplies.

ShopUp operates as Bangladesh’s largest organized distributor of fast-moving consumer goods (FMCG), running over 200 hubs nationwide. Meanwhile, Sary has established its footprint in Saudi Arabia, Egypt, and Pakistan.

Highlighting the significance of the deal, ShopUp pointed out that over 3 million Bangladeshis currently reside in Saudi Arabia, playing a vital role in Bangladesh’s economy.

“We don’t plan to stop at Saudi Arabia — expansion into more Middle Eastern markets is on the horizon,” said a senior ShopUp official.

The merger comes at a time when the trade corridor between the Gulf and South Asia is projected to handle over $682 billion in trade over the next decade, positioning it as one of the most influential global trade routes.

“We see this as a pivotal opportunity to evolve into a globally competitive enterprise,” the official added.

The unified entity will operate under the name SILQ Group. The strategic partnership is supported by a $110 million investment led by Sanabil Investments—a wholly owned subsidiary of Saudi Arabia’s Public Investment Fund (PIF)—alongside Valar Ventures, co-founded by Peter Thiel.

The funding round includes both equity capital and a financing facility for SILQ Financial, the newly created financial arm of the group that aims to drive innovation in SME-focused funding.

“With this merger, we’re entering a trade corridor projected to be one of the world’s largest. SILQ will enable fast-growing economies to access global products and shape future consumption patterns,” said Afeef Zaman, CEO of SILQ Group.

A spokesperson for Sanabil Investments said, “SILQ is well-positioned to lead B2B commerce on both regional and global fronts. This merger addresses the long-standing need for an integrated platform that brings together commerce, logistics, and finance. We’re committed to supporting this next phase of growth.”

While ShopUp has not revealed when the deal was finalized, both companies will continue to operate under their existing brand names in their respective markets, while benefiting from SILQ’s unified infrastructure and expanded capabilities.

Afeef Zaman will take over as CEO of SILQ Group. Mohammed Aldossary, Sary’s founder, will become CEO of SILQ Financial, while ShopUp’s co-founder Ataur Rahim Chowdhury will assume the role of CEO of ShopUp Bangladesh.

“Combining our expertise means more than just growth—it’s about redefining digital commerce for merchants in the GCC and South Asia,” said Aldossary. “SMEs have long been underserved, despite their essential role in regional economies. This merger is for them.”

James Fitzgerald, founding partner at Valar Ventures, described the merger as a bold initiative to place emerging markets at the center of a new cross-border commerce ecosystem.

Notably, this marks Sanabil’s first direct investment in South Asia. Other participants in the funding round include Flourish Ventures, Kuwait’s sovereign fund Wafra, and Qatar Development Bank, owned by the Qatari government.

BDST: 1210 HRS, APR 09, 2025
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