In 2022-2023, AloqaVentures has emerged as a pivotal force in shaping the startup ecosystem in Uzbekistan. As the venture capital arm of AloqaBank, it has made significant steps by investing in 22 diverse and innovative projects. These investments are not merely financial endorsements but a testament to AloqaVentures' commitment to nurturing a vibrant entrepreneurial landscape in Uzbekistan, the fund's review reports.
The venture market in Uzbekistan began actively growing a few years ago, with the establishment of local venture funds such as UZVC, UCVC, Semurg VC, and AloqaVentures. These funds collectively invested more than $4bn in local startups, as well as projects from Central Asia and the Caucasus.
AloqaVentures' strategic vision is evident in its investments in 22 projects. These projects span various sectors such as technology, AI, fintech, adtech, and medtech, reflecting a keen understanding of market needs and future trends. As per Abdulaziz Sultonov, the operating partner at the fund, each investment was meticulously chosen based on its potential to drive innovation and contribute to the economic growth of Uzbekistan.
Some of the local startups in AloqaVentures’ portfolio include Depozit.uz, Mohirdev.uz, KPI.com, Didox.uz, YOTO, Billz, and Geomotive. These startups offer a range of services from financial marketplace to educational courses and retail management platforms, showcasing the diversity and innovation present in Uzbekistan's startup landscape.
In particular, Billz.io, a cloud-based software that provides a comprehensive suite of tools for retail management, helped retail stores to automate, optimize, and grow their operations. As per the testimonials and success stories of billz.io’s clients, the integration of billz.io has helped retail stores save hundreds of hours, increase sales by up to 40%, reduce operational costs, and expand their online and offline presence. Billz.io has also contributed to the development of the retail sector and the innovation ecosystem in Uzbekistan.
AloqaVentures also made significant partnerships with other active venture funds and IT hubs, such as BGlobal Ventures, Domino Ventures, and Sturgeon Capital, MCS Ventures, Axel, Caucasus Ventures, SabahLab. As per Sukhrob Gaybulloev, the fund director, in the venture world of their developing region, there is no competition; they can create the ecosystem only by befriending each other.
A standout aspect of AloqaVentures' agenda has been its focus on aiding foreign startups to gain a foothold in the Uzbek market. In 2023, the venture fund invested in foreign startups such as Cerebra, Cargon, and GoDays. This has not only expedited the growth of these startups but also enriched the AloqaBank ecosystem with fresh perspectives and innovative solutions.
AloqaVentures also played a pivotal role in facilitating zypl.ai's expansion into the Uzbekistan market. Through their strategic support and resources, zypl.ai was able to establish a strong presence and effectively cater to the burgeoning market demand for advanced AI solutions.
To achieve its mission of stimulating companies, startups, and partners to jointly create modern tech solutions and drive digital change, AloqaVentures undertook several key initiatives. Strategic collaboration with a leading innovation platform Plug and Play and IT Park Uzbekistan is designed to support the startup ecosystem in Central Asia and Uzbekistan. Main goals of this partnership:
- Provide Uzbek startups with access to global markets, networks, and resources;
- Connect Uzbek startups with leading corporations and investors from around the world;
- Foster innovation and entrepreneurship in various sectors such as FinTech, InsurTech, Enterprise Tech, and Education;
- Enhance the skills and knowledge of Uzbek entrepreneurs through mentorship, workshops, and events;
- Showcase the potential and opportunities of the Uzbek market to the international community;
The partnership was officially launched in October 2022, with the opening of the Plug and Play office in Uzbekistan. The first two batches of startups participated in a three-month acceleration program, at the end of which founders pitched their solutions to the leading venture funds and corporations from Central Asia. Plug and Play accelerator increased the quality of the startups and founders significantly. This partnership is expected to have a positive impact on the Uzbek economy, society, and innovation landscape, and contribute to the vision of Uzbekistan as a regional hub for technology and innovation.
As AloqaVentures continues to propel forward, its role in sculpting a thriving startup ecosystem in Uzbekistan becomes increasingly significant. The success of its 2023 activities serves as a blueprint for future endeavors, promising a vibrant and innovative future for Uzbekistan's economy. AloqaVentures has ambitious plans for 2024, aiming to expand its investment portfolio to 35 projects and increase its total investment capacity to $5mn.
The fund also seeks to strengthen its network by forming strategic alliances with global players in the venture capital landscape, such as accelerators, incubators, and corporate VCs. Furthermore, it is dedicated to providing comprehensive support to its portfolio startups as they expand into foreign markets, including Central Asia, Europe, and the US, by offering market research, localization strategies, and facilitating connections with local partners.
Additionally, AloqaVentures remains committed to fostering the growth of the local startup ecosystem by collaborating with local incubators and accelerators, providing mentorship, training, and investment opportunities, and sponsoring events and activities aimed at promoting entrepreneurship and innovation within Uzbekistan.
In summary, AloqaVentures has played a vital role in developing Uzbekistan's startup ecosystem. Its 2023 activities demonstrate its dedication to supporting innovative startups and creating consumer value, focused on modern tech solutions, digital change, and bank ecosystem integration. With this strategic approach, AloqaVentures is poised to continue driving innovation in Uzbekistan and beyond.
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