RedDot brings Tk 15cr private equity fund

RedDot Digital has unveiled a private equity fund worth Tk 15 crore called 'R-Ventures' to promote digital entrepreneurship in Bangladesh, according to a press release from the company issued yesterday.

The fund, a wholly-owned subsidiary of Robi Axiata, will work as an alternative investment fund registered under the Bangladesh Securities and Exchange Commission (BSEC).

With this move, the total number of venture capital and alternative investment funds available in the country stands at seven.

"The initiative to form the R-Ventures Alternative Investment Fund to support young entrepreneurs is highly commendable," said Prof Shibli Rubayat Ul Islam, chairman of the BSEC.

"We will always provide our full support for such initiatives," added Islam, who expects that the success of this move would encourage others to introduce similar funds to support promising ventures.

R-Ventures will work to ensure a reliable and specialised source of alternative investment fund to turbocharge the country's promising digital start-ups, said Mahtab Uddin Ahmed, managing director and chief executive officer of Robi Axiata.

Apart from securing the investment fund, R-Ventures will provide management advisory and mentoring support to participating digital start-ups.

Besides, it will plug digital start-ups into a strong investors' network for securing their funding.

"So, R-Ventures will certainly diversify our capital market," Ahmed added.

RedDot Digital will act as the fund's sponsor while SBK Tech Ventures will act as the general partner or fund manager. Meanwhile, Green Delta Insurance Company will act as the fund's guardian.

IDLC Investments and ACNABIN will perform the roles of valuer and auditor respectively.

With the purpose of launching the fund, an agreement signing ceremony took place among RedDot Digital, SBK Tech Ventures and Green Delta Insurance Company at a city hotel on Wednesday.

Asif Naimur Rashid, managing director of RedDot Digital, and Sonia Bashir Kabir, founder of SBK Tech Ventures, signed the agreement on behalf of their respective organisations.

   BSEC Commissioner Shaikh Shamsuddin Ahmed and Chairman of the Venture Capital and Private Equity Association of Bangladesh Shamim Ahsan were also present on the occasion.