Bangladesh Sustainability Excellence Award Finalists 2023: How Daraz has created a crowdfunding platform
Started as a temporary response for Covid-19 and evolved as Daraz Donates after the Banga Bazar fire incident.

Daraz Donates is a crowdfunding platform initiated by Daraz Bangladesh, the largest online marketplace in the country. The platform allows people to donate cash or kind from the ecommerce store, to support disaster relief efforts of NGOs. Daraz promotes local NGOs who accept donations through their app, and also supports them through their CSR fund.

Daraz Donates was launched in response to the Bongobazar fire and the Cyclone Mocha, two major disasters that occurred in Bangladesh in 2023. The Bongobazar fire, which happened on October 10, 2023, destroyed more than 500 shops and affected thousands of livelihoods. The Cyclone Mocha, which hit the coastal areas of Bangladesh on November 15, 2023, caused

widespread damage and displacement. Daraz Donates partnered with several NGOs, such as BRAC, JAAGO Foundation, and Bidyanondo Foundation, to provide immediate and long-term assistance to the victims of these disasters.

Daraz Donates collected donations from various sources, such as:

  • Sale induced donation: Daraz donated a percentage of its sales revenue to the NGOs, based on the customers’ choice. The customers could select the NGO they wanted to support, and Daraz would donate 1% of the product price to that NGO. This way, Daraz collected 4,50,238 BDT from the sale induced donation.
    • Daraz Cares fund: Daraz created a fund called Daraz Cares, where customers could donate cash directly to the NGOs through the Daraz app. The customers could choose the amount and the NGO they wanted to donate to, and Daraz would transfer the money to the NGO’s account. Daraz collected 2,00,000 BDT from the Daraz Cares fund.
    • Daraz CSR fund: Daraz also contributed from its own CSR fund, where it allocated a portion of its profits to support social causes. Daraz donated 2,00,000 BDT from its CSR fund to the NGOs.
    • Daraz Donates model: Daraz also enabled customers to donate kind from the ecommerce store, by creating a special category called Daraz Donates. The customers could browse through the products that were needed by the NGOs, such as food, clothing, medicine, and shelter items, and purchase them for the NGOs. Daraz would then deliver the products to the NGOs’ warehouses or distribution centers. Daraz collected 1,31,500 BDT worth of products from the Daraz Donates model.

The total amount of donations collected by Daraz Donates was 9,81,738 BDT, which was distributed among the NGOs according to their needs and priorities. The NGOs used the donations to provide relief and rehabilitation to the victims of the Bongobazar fire and the Cyclone Mocha. Some of the activities and outcomes of the NGOs were:

  • BRAC: BRAC provided emergency cash assistance, food packages, water purification tablets, hygiene kits, and solar lamps to the affected families.
    • JAAGO Foundation: JAAGO Foundation focused on the education and protection of the children who were affected by the disasters. JAAGO Foundation distributed school kits, uniforms, books, and stationery to the children who lost their educational materials.

ActionAid Bangladesh, It’s Humanity Foundation and other NGOs have also been verified and added to the platform by Daraz for round-the-year support.

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