ShopUps largest business unit, Mokam CPG (Consumer Packaged Goods), became net profitable in June 24. This business unit, focusing on the B2B distribution of FMCG products and services, generated more than 2,000 crore in revenue with BDT 26 crore in operating profit for FY 23-24, marking over 6 times year-over-year growth.
The company also announced that businesses have generated 3,300 crore in revenue and 95% of this is PBT (Profit Before Tax) positive. The numbers are based on unaudited management financials of ShopUp entities of 2023-24. The overall group is on track to become net profitable soon.
Nazir Ahmed, CEO of Mokam CPG, stated, "We are creating the largest distribution platform for FMCG goods in Bangladesh. Our heavy investment in R&D and top talent over the past three years is paying off. This is just the beginning of the distribution revolution we aim to lead", says a press release.
Mokam CPGs profitability achievement was possible due to ShopUps data-driven decision-making, which improved operational efficiency. Over the past three years, the company identified significant gaps in traditional FMCG distribution methods. By developing technology to address these gaps, ShopUp significantly reduced its inventory holding period compared to traditional distributors, resulting in faster cash cycles. This success was enabled by collaborating with major companies across various categories, providing ShopUp access to a large dataset and deep insights into market dynamics. Mokam CPG is the largest distribution platform in Bangladesh, operating more than 200 distribution centers nationwide.
It is currently serving major local and international brands like Marico, Unilever, Robi, Banglalink, JTI, Lafz, Remedist, Elite, ACI, Grameenphone, Himalaya, Meghna Group of Industries, New Zealand Dairy, Olympic, Reckitt, RSPL Group, Square Food and Beverages Limited, Square Toiletries Limited, Syngenta, TK Group, and many more.
