Uzum aims to invest $300 million in Uzbekistan's new economy alongside prominent international investment funds
TASHKENT, Uzbekistan, Oct. 5, 2023 /PRNewswire/ -- Uzum alongside prominent international investors plans to invest $300 million to fund further growth of the digital economy in Uzbekistan. Investments are planned to be allocated towards accelerating expansion of e-commerce, digital banking and fintech services offered by Uzum Group as well as expanding the company's own logistics infrastructure. The investment round will represent an important milestone in the company's history and highlights a key role that Uzum plays as the national digital champion and the key enabler of digital transformation in Uzbekistan.
Having completed all formal procedures related to the formation of the holding structure, Uzum is now ready to raise funds from the leading investment funds. In line with the Group's strategy, new funds would be used to boost growth and strengthen leading positions of the existing business units as well as to expand into adjacent verticals with a strong synergy potential.
Uzum is creating a national digital platform that offers digital services to millions of the country's residents. In addition to the existing product range, the company boasts a strong backlog of new products, e.g. classifieds, various services and products for entrepreneurs (for instance, fintech and last-mile logistics). Uzum's mission is to create a one-stop digital solution for both consumers and businesses, providing its clients across the whole country with access to best-in-class digital solutions. The development of the ecosystem is also strongly beneficial to the country's economy as it contributes to proliferation of the SME segment, increases banking services penetration, improving financial literacy and growing share of cashless transactions.
Djasur Djumaev, founder and CEO of Uzum: "Today, Uzbekistan represents a truly appealing investment case. A unique combination of factors, including (i) strong economic growth, (ii) favourable demographics, (iii) high and growing internet penetration, (iv) rapid expansion of ecommerce and fintech industries and (v) steady governmental support makes Uzbekistan a hotspot for inventors seeking a sustainable secular growth potential. We are delighted to welcome several prominent investment funds willing to back our ambitious growth aspirations. Attracting funds from top-tier international institutions is the start of an exciting new chapter allowing us to fasten our expansion plans. In addition, it will help Uzum to create thousands of jobs within the ecosystem as well as among small and medium-sized businesses across the country. As a result, Uzum will continue being an important contributor to the sustainable economic and disposable income growth - one of the key goals stipulated in the 'Uzbekistan 2030' strategy. Uzum is rightfully the first technology unicorn in Uzbekistan, thanks to which our country appeared on the map of the ones, producing great tech leaders of the future.
According to KPMG data, Uzbekistan records the highest e-comm growth rates among the Central Asian peers. Over the next five years, the e-comm industry is expected to expand sevenfold, reaching a $1.8 billion size. Such a strong growth potential is facilitated by a unique regulatory environment ensured by the government of Uzbekistan. 'Digital Uzbekistan 2030' strategy envisages further active transformation of the country's economy in the coming years.
Emergence of major players like Uzum is another important contributor to the digital economy's expansion. Today, over 13 million residents of the country, including approximately 50,000 entrepreneurs and companies from across the country, use services within the Uzum ecosystem. In 2024, the national marketplace, Uzum Market, is planning to launch a logistics center, which will be the largest in Uzbekistan, meanwhile Uzum will be expanding its IT infrastructure for the development of financial services, digital banking, and other platform products.
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