Uzum, a so-called “Uzbek Amazon” that engages in online retail trade, fintech and food delivery, has become the first unicorn (a company with a market value of more than $1 billion) in Uzbekistan as it raised $114 million in investments. After the company raised new investments, its market value rose to $1.16 billion according to Techcrunch.
In 2020, there were around 1,200 startups in Uzbekistan. About 85% of them were at the initial stage of fundraising. The Asian Development Bank believes that the vast majority of startups on the market were fintech services (with a market share of 30%) and online retailers (with a share of 27%).
Uzum was established in October 2022. As of today, the company has more than eight million active customers per month. The company will allocate two-thirds of the new investments for the fintech business line and one-third for e-commerce. Uzum is expected to launch new financial products for individuals and small and medium-sized businesses. It also plans to invest in its IT and logistic infrastructure. During its first year of operation, the startup reported $150 million in gross merchandise value (GMV). This year, Uzum is expecting GMV not less than $300 million.
In Kazakhstan, the market is also waiting for unicorns to emerge, according to Yersultan Yermanov, head of the IT Industry Development Department under the Digital Ministry of Kazakhstan. So far, the country’s export of IT services reached $500 million. If the ministry is correct in its forecasting, the country’s IT exports will have grown by 16.6 times since 2020.
