Uzbekistan’s startup ecosystem has experienced significant growth in 2024, jumping 88 spots in the global rankings to secure the 110th position, surpassing Ethiopia. With a population of 37 mn and Tashkent ranking 3rd in Central Asia, the country’s startup landscape is rapidly expanding, supported by government initiatives and a young, tech-savvy population. As Uzbekistan continues to develop its tech ecosystem, Plug and Play, a global innovation platform, is playing a pivotal role in connecting local startups with international markets.
During Uzbekistan’s ICT Week, Sascha Karimpour, Partner at Plug and Play and Co-Founder of Plug and Play Uzbekistan, sat down with Daryo’s Tawney Kruger to discuss Plug and Play’s involvement in nurturing Uzbekistan’s startup ecosystem and its vision for the future. Reflecting on Plug and Play’s entry into the market, Karimpour recalled, “We didn’t 100% know who IT Park was… but since it had the word IT and tech in it, we said, ‘Okay, let’s spend an hour.’” That meeting with IT Park Uzbekistan led to the creation of Plug and Play Uzbekistan, which has since become a driving force behind the local tech ecosystem.
Growing Talent Pool in Tashkent
A critical factor in Uzbekistan’s growth is the abundance of young, well-educated talent. Tashkent’s universities produce more than 125,000 graduates annually, including over 25,000 specializing in IT. This growing talent pool has attracted the attention of global investors and corporations looking for skilled workers in the region. “Uzbekistan is on the rise,” Karimpour said, emphasizing the value of its growing workforce. “The government is really behind this topic. Without their drive, nothing would happen.”
Many locals are also multilingual, providing startups with the linguistic skills necessary to expand globally. This young, diverse talent pool has become an essential component of the country’s ability to foster startups in industries like FinTech, EdTech, and software development.
Uzbekistan’s Rapid Digital Transformation
Uzbekistan’s rapid digitalization has played a crucial role in accelerating the startup ecosystem. Since the early 2000s, the government has prioritized ICT development, significantly expanding its digital infrastructure. By 2022, the country’s fiber-optic network had grown sixfold, reaching 118,000 kilometers. These advancements support the government’s broader “Digital Uzbekistan – 2030” strategy, which aims to boost digital transformation across key sectors, including e-government and the digital economy.
“We are trying to help the ecosystem here in Uzbekistan gain more of an international standard,” Karimpour said. Plug and Play has contributed to this effort by mentoring startups and connecting them with its global network. “We’re creating landing pads for startups, helping them connect with big corporations for proof of concepts (POCs),” Karimpour added, pointing to the importance of helping Uzbek startups integrate into the global tech scene.
Uzbekistan has also made considerable strides in digital public services. As of 2022, 70% of government services were provided electronically through the country’s e-government platform, which hosts 307 services. These technological advancements are paving the way for further growth in the startup sector, particularly in industries like FinTech and EdTech.
Connecting with Uzbekistan’s Startup Ecosystem
IT Park Uzbekistan, a government-backed initiative, has been instrumental in supporting the development of the country’s IT sector by offering infrastructure, resources, and mentorship to emerging startups. Its IT Visa program simplifies the process for international entrepreneurs to enter the market, providing them with the same opportunities as Uzbek citizens (excluding voting rights). Additionally, the One Stop Shop program streamlines the process of establishing a business in Uzbekistan, further encouraging foreign and local entrepreneurship.
Plug and Play Uzbekistan works closely with local talent, offering support and opportunities to expand globally. “We are a neutral moderator,” Karimpour explained. “We’re trying to see what exists in the ecosystem already, and then we fine-tune our services to match the needs of individual startups.”
Karimpour noted that Uzbekistan’s startup ecosystem, while still growing, is already showing signs of success. “When we first arrived two years ago, there were about 80 serious startups in Uzbekistan. Now, I think it’s around 100, maybe 120,” he said. The steady increase in startups, coupled with support from organizations like Plug and Play, is helping Uzbekistan’s ecosystem align more closely with international standards.
FinTech and EdTech Leading the Charge
FinTech and EdTech are two of the most promising sectors in Uzbekistan’s startup landscape. Tashkent ranks #1 in Central Asia for FinTech startups and #4 in EdTech, underscoring the country’s potential as a tech hub in the region. Karimpour is particularly excited about the future of FinTech in Uzbekistan, revealing that Plug and Play is launching a dedicated FinTech program in 2025. “For FinTechs from Uzbekistan or internationally, there’s so much opportunity in the country to do business,” he said.
Uzbekistan’s banking sector is currently undergoing privatization, with the government encouraging collaboration between startups and banks. This presents a prime opportunity for FinTech companies to work with financial institutions to introduce new technologies and services.
A Bridge to Global Markets
Plug and Play’s global network, which includes over 550 of the world’s largest corporations, offers Uzbek startups the opportunity to scale internationally. “We are like a bridge of know-how and expertise,” Karimpour said, emphasizing Plug and Play’s role in connecting local startups with global partners. By helping Uzbek entrepreneurs collaborate with major industry players, Plug and Play is accelerating the internationalization of Uzbekistan’s tech sector.
Looking to the future, Karimpour remains optimistic about Uzbekistan’s potential to produce more unicorns—startups valued at over $1 bn—following the success of Uzum, the country’s first unicorn. “There’s very good potential that there will be more unicorns in Uzbekistan,” he said, while acknowledging that growth will take time. “We invest in startups in their earlier stages, so it might take a few years until they become unicorns.”
The Future of Uzbekistan’s Startup Ecosystem
As Uzbekistan’s startup ecosystem continues to grow, Plug and Play remains committed to supporting local talent and fostering innovation. “Uzbekistan is on the rise, and we’re excited to be part of this journey,” Karimpour concluded. With its thriving startup scene, growing talent pool, and rapid digital transformation, Uzbekistan is poised to become a significant player in Central Asia’s tech landscape.
With Plug and Play’s global expertise and a supportive environment created by the government, Uzbekistan is well-positioned to attract international investors and startups, driving economic growth and innovation in the region.
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