Dhaka, July 2025 – The Government of Bangladesh has taken a major step to accelerate the growth of its technology and startup ecosystem by unveiling a dedicated Tk 1 billion fund in the recently announced FY 2025–26 national budget. This new financial boost aims to empower emerging entrepreneurs, promote innovation, and create a more vibrant digital economy.
Key Highlights of the Startup Fund
- The fund will provide seed capital, grants, and low-interest loans to promising startups in sectors such as ICT, fintech, health tech, and green technology.
- Priority will be given to initiatives focusing on sustainable development, climate tech, and digital inclusion.
- The program includes capacity-building efforts, mentorship, and networking opportunities designed to help young companies scale efficiently.
Government’s Vision for a Digital Bangladesh
This move aligns closely with the government’s broader ambition to transform Bangladesh into a regional technology hub by nurturing homegrown innovation. Officials believe the fund will encourage a new generation of entrepreneurs to solve local and global challenges using cutting-edge technology.
Tax Incentives Complement the Fund
In addition to the startup fund, the FY 2025–26 budget introduces several tax benefits to support the tech sector, including:
- Reduction of source tax on internet services from 10% to 5%, making digital connectivity more affordable.
- Exemption from VAT for computer monitors under 30 inches, aiming to reduce the cost of tech equipment for businesses and individuals.
- Special incentives for green energy startups and companies involved in marine technology, reflecting Bangladesh’s commitment to environmental sustainability.
Expected Impact on the Startup Ecosystem
Industry experts have welcomed these initiatives as critical for fostering a thriving entrepreneurial ecosystem. By easing access to finance and reducing operational costs, the government aims to unlock innovation potential and drive job creation in the tech sector.
Startups like ShopUp, Shikho, and Pathao—which have already made significant impacts locally and internationally—are expected to benefit from these new opportunities. The fund is also expected to attract more private investment and partnerships with global tech firms.
What’s Next?
The Ministry of ICT is set to announce detailed guidelines soon on how startups can apply for funding and the criteria for eligibility. As Bangladesh’s startup ecosystem matures, this Tk 1 billion fund is seen as a vital catalyst to sustain momentum and foster inclusive growth.
In summary: Bangladesh’s Tk 1 billion startup fund is a bold financial commitment to ignite innovation and entrepreneurial success. Coupled with tax relief and targeted incentives, this initiative could help propel the country’s tech ecosystem onto the global stage.
