Uzum, an innovative e-commerce startup, has secured $114 million in funding, making it Uzbekistan’s first unicorn with a valuation of $1.16 billion. Uzum offers online shopping, fintech, and food delivery services to millions of customers in the country.
With a population of over 35 million, Uzbekistan has a significant youth demographic, with individuals under 30 accounting for about 60% of the population. The country boasts a nearly 100% literacy rate and high internet and smartphone penetration rates, making it an ideal environment for startups. In 2020, Uzbekistan had nearly 1,200 startups, with fintech and e-commerce startups leading the market.
Despite the potential, e-commerce services in Uzbekistan were lacking, with only 2.2% of the total retail market being attributed to the sector. Uzum’s CEO, Djasur Djumaev, noticed this gap and saw an opportunity to transform the market by offering a comprehensive e-commerce platform with end-to-end logistics and efficient delivery services.
Since its launch in October 2022, Uzum has rapidly grown, attracting over 8 million monthly active users and partnering with more than 9,000 merchants. The startup recorded a gross merchandise value (GMV) of $150 million in its first year of operations and expects to double that figure in the current year.
Building on its success, Uzum expanded into fintech, introducing a buy-now-pay-later (BNPL) product that accounts for a significant portion of its e-commerce transactions. The startup also ventured into food delivery and established a digital bank to cater to various customer needs.
The recent Series A funding round, led by FinSight Ventures, raised $114 million, with plans for a Series B round to raise an additional $200 million. Uzum intends to allocate the funding towards expanding its fintech and e-commerce services, launching new products, and enhancing its IT and logistics infrastructure.
By the end of the year, Uzum plans to consolidate its offerings into two super apps, focusing on consumer and business products respectively. The startup also aims to establish the country’s largest logistics complex for e-commerce, signaling its commitment to growth and innovation in Uzbekistan’s tech landscape.
With a vision to become a national tech leader, Uzum aims to replicate the success of similar companies in neighboring markets and leverage its unique capabilities to drive growth and profitability across its e-commerce and fintech services.
