Startup Bangladesh sells stake in Pulse Tech in first-ever exit

Startup Bangladesh, the government’s venture capital arm, has sold its stake in health-tech company Pulse Tech Limited, marking its first-ever exit and what it says is the first such exit by any sovereign venture fund in Bangladesh.

The Daily Star reached out to both companies for the size of the investment and the sale price, but both declined to disclose the amounts.

Tap here to add The Daily Star as a trusted source

In the venture capital industry, an “exit” is simply when an investor sells its stake in a company and cashes in on the investment, usually because the company has grown enough to attract bigger investors, or because it has been acquired or gone public.

A successful exit is considered a key sign of a maturing startup ecosystem, since it lets early investors recycle their capital into new startups while showing that such investments can actually pay off.

Startup Bangladesh, in a statement yesterday, said the exit does not mark the end of its relationship with Pulse Tech. Rather, it reflects Pulse Tech’s progress to a stage where new investors can take over.

Pulse Tech has grown from about $2 million in annual revenue at the time of investment to more than $150 million in annualised revenue, while remaining profitable

Md Mamunur Rashid Bhuiyan, secretary of the ICT Division and chairman of Startup Bangladesh, said the first successful exit reflected the growing maturity of Bangladesh’s startup ecosystem and the organisation’s long-term vision of promoting innovation-driven entrepreneurship.

Nurul Hai, managing director and chief executive officer of Startup Bangladesh, said it would continue supporting startups and investors through its Fund of Funds initiative to bring more capital into the country’s innovation ecosystem.

He said Bangladesh offers strong growth opportunities across multiple sectors, and that successful exits are achievable with greater collaboration among entrepreneurs, investors and policymakers.

Since beginning operations, Startup Bangladesh has invested in 36 startups across multiple sectors, providing growth capital alongside strategic guidance.

Pulse Tech has been one of Startup Bangladesh’s portfolio companies since 2024. The company operates as a technology-enabled pharmaceutical distributor, combining medicine distribution with embedded financing, software-as-a-service (SaaS) solutions and the ONE Pharmacy franchise network.

According to Startup Bangladesh, Pulse Tech has grown from about $2 million in annual revenue at the time of investment to more than $150 million in annualised revenue, while remaining profitable.

Over the past 18 months, the company has recorded an average monthly growth rate of 20 percent and now serves more than 14,000 pharmacies, providing over 8.5 million people in Dhaka with access to authentic medicines, the venture capital firm added.

Pulse Tech Co-founder and CEO Kazi Ashikur Rasul said the government-backed fund was the company’s first institutional investor, adding that its early confidence helped Pulse Tech build a business capable of delivering value to both customers and investors.

Pulse Tech officials said the company is now preparing for a Series A funding round, nationwide expansion and entry into Gulf markets.