Fintech PR

Uzum becomes first tech unicorn in Uzbekistan after raising over $100 mln in funding

Published

8 months ago

March 26, 2024

TASHKENT, Uzbekistan, March 26, 2024 /PRNewswire/ — Uzum, a leading digital services ecosystem in Uzbekistan, has secured more than $100 mln in funding through a combination of a Series A funding round and debt financing, making Uzum the first tech company in Uzbekistan to achieve unicorn status with a post-money valuation of over $1 billion. Uzum plans to use the funds to develop the country’s IT and logistics infrastructure, as well as to fund its own BNPL-service.

Uzum secured over $50 mln in equity through a Series A funding round consisting wholly of primary investments. The round was led by the global venture capital firm FinSight Ventures (whose portfolio companies have included Intercom, ThoughtSpot, Automation Anywhere, Toss, GupShup, Razorpay, Bumble, Rappi, Carta and others), joined by Xanara Investment Management, a multifamily office in the UAE, and Uzum’s senior management team. The company separately raised an additional $50+ mln in debt financing.

Investors taking part in the Series A funding round will receive stakes of less than 5% in the company. Given Uzum’s strong performance in 2023 – its first full year of operations – and the ecosystem’s enormous potential, the shareholders decided to not substantially dilute their ownership stakes during the funding round. In 2024, Uzum plans to raise additional financing of approximately $200 million in a Series B funding round from investors in the Middle East, the United Kingdom and the United States.

Combining e-commerce, fintech and banking services for individuals and small and medium-sized enterprises, the Uzum digital ecosystem includes a marketplace, an express delivery service, traditional and digital banks, a BNPL service, an automotive marketplace and an app for entrepreneurs. All of the ecosystem’s components are now being integrated into two superapps: Uzum for individuals, and Uzum Business for legal entities. By the end of 2023, the Uzum ecosystem had 10 million monthly average users and net profit just shy of $100 million. Meanwhile, Uzum’s retail banking and fintech businesses were among the leaders in the country in terms of profit, and its e-commerce business was the largest online platform in Uzbekistan by the number of users and number of orders, with turnover of around $150 million.

In 2024, Uzum plans to launch the largest logistics complex for e-commerce in the country, which is expected to increase e-commerce turnover on its platform by more than 150% during the year. It also plans to launch a number of ecosystem products for unsecured lending to individuals as well as small and medium-sized enterprises.

Alexey Garyunov, managing partner at FinSight Ventures, commented:

“We focus on FinTech, B2B SaaS and the e-commerce markets in the US and India, as well as investing in superapps in emerging markets. By combining convenient payment solutions with an e-commerce platform, Uzum achieved impressive results in just a year and a half, launching one of the top three apps in the country in terms of the number of downloads, trailing only instant messengers and social networks. Uzum has already become the national leader in its key business verticals (fintech and e-commerce) thanks to strong network effects and synergies between its various businesses. Uzbekistan is one of the markets where consumers moved from offline directly to mobile (bypassing the web browser stage), which makes this market ideal for creating a superapp that combines banking, fintech, e-commerce and other services in an ecosystem for consumers and entrepreneurs. We witnessed the success of Kaspi.kz in creating a superapp in neighboring Kazakhstan, Rappi in Latin America, and Toss in South Korea, and we are confident that Uzum, which has the necessary talent, resources and products, will repeat this success to become the national tech leader in Uzbekistan.

Djasur Djumaev, Uzum’s founder and CEO, said:

“Digital services in Uzbekistan today are incredibly popular. We see this in the growth rates of the markets that we work in as well as in our own experience. In a little over a year, we have built an ecosystem whose services are used by more than 10 million people in Uzbekistan every month. Last year, we earned nearly $100 million in net profit, and we intend to increase this figure this year, partly by integrating services within the Uzum ecosystem. We also plan to add new business streams and services for business and private users to the ecosystem this year. We see tremendous interest in the Uzbek market and in Uzum’s digital ecosystem as one of its drivers and, of course, this would not have been possible without the extraordinary team of world-class professionals who created the first tech unicorn in the country’s history.”

According to KPMG, Uzbekistan is home to the fastest-growing e-commerce market in Central Asia, with the potential to grow up to sevenfold by the end of 2027. At the same time, the country’s GDP grew by 6% in 2023, and Uzbekistan plans to double this figure in the next few years. Experts note that the country’s economy has the potential for growth and rapid digitalization thanks to several factors, including a high rate of Internet penetration, a young population, as well as a currently low penetration rate of banking and financial services.

About Uzum
Uzum is a digital ecosystem and the largest digital platform in Uzbekistan, providing services spanning e-commerce, express delivery, banking and fintech, and business development. More than 10 million people in Uzbekistan, or nearly one-third of the country’s population, use Uzum services every month. Learn more at uzum.com.

About FinSight
FinSight Ventures is a venture capital firm specializing in investments in FinTech, B2B SaaS and e-commerce companies as well as other segments of the tech market. The company invests at various stages (from seed to later stages), covering the entire funding cycle for tech companies. FinSight focuses on the US and Indian markets and also invests on a more global scale in superapps in emerging markets. FinSight manages more than $500 million in assets, with investor returns of over $600 million since its founding in 2004.

One of the firm’s biggest deals was its investment in Bumble, which Blackstone acquired in 2019. At the time of the deal, the company was valued at $3b. Having backed Bumble from the very beginning, Finsight VC was the sole financial investor in the company.

About Xanara
Xanara Investment Management is a multifamily office located in Dubai. The company specializes in managing client assets, provides family office services, and also advises on wealth creation and preservation.

For additional information please contact: [email protected]

View original content:https://www.prnewswire.co.uk/news-releases/uzum-becomes-first-tech-unicorn-in-uzbekistan-after-raising-over-100-mln-in-funding-302099522.html

Fintech PR

Joe Depa named as EY Global Chief Innovation Officer to lead its global innovation strategy

Published

5 hours ago

November 26, 2024

CISION (PR Newswire)

joe-depa-named-as-ey-global-chief-innovation-officer-to-lead-its-global-innovation-strategy

Depa will lead on the discovery and deployment of emerging technologies to help address business challenges and shape the future with confidence
Brings deep experience in identifying new ways that can practically help business transformation through an innovation mindset and culture shift

LONDON, Nov. 26, 2024 /PRNewswire/ — The EY organization announces today the appointment of Joe Depa as the new EY Global Chief Innovation Officer, effective immediately. Within this role, he will spearhead applied innovation to help improve service delivery and guide EY teams to address and solve business challenges.

Depa joins the EY organization at a pivotal moment, as a range of emerging technologies are reshaping businesses and industries, creating a multitude of new challenges and opportunities. To keep pace, the EY organization is continuing to make significant investments in areas such as artificial intelligence (AI), quantum computing and blockchain, and most recently formed the EY.ai Global AI Advisory Council.

In his new role, Depa will be leading the organization’s global innovation strategy. This will include overseeing efforts to successfully implement emerging technologies for tangible business applications, both internally and across work of EY member firms with clients.

Raj Sharma, EY Global Managing Partner of Growth and Innovation, says:

“At this time of constant disruption, success would require a forward-thinking approach and willingness to make bold decisions, which are at the heart of an innovative mindset. We’re thrilled to have Joe’s deep experience and knowledge around AI and data to lead on our strategic approach to innovation so that EY teams can help clients shape their future more confidently.”

Throughout the last decade, Depa has worked closely with C-suite leaders and boards to bring innovative products and services to market, improve client and employee experiences, and help enhance operational efficiencies through technology. Most recently, he served as the inaugural Chief Data and AI Officer at a leading university and health care organization. At the university, he helped to promote AI literacy, launch a responsible AI governance program and enable a secure data foundation. Prior to that, he acted as Senior Managing Director and Global Lead for Data and AI at a global multinational professional services company, where he led a team of AI strategists and data engineers in developing and implementing new products and services.

Joe Depa, EY Global Chief Innovation Officer, says:

“I’m truly excited to join an organization that is ‘All in’ on its commitment to the transformative potential of emerging technologies. I look forward to working with the EY teams and clients to help empower them to apply innovation in bold, new ways that help create value for clients through data, AI and emerging technologies to make the world a better place.”

A renowned thought leader in the field of AI, Depa has been recognized as one of the “Top 50 Global Leaders” by World Summit AI and has received Fast Company’s “World Changing Idea” award, among other accolades.

For more information, visit: ey.com.

About EY

EY is building a better working world by creating new value for clients, people, society and the planet, while building trust in capital markets.

Enabled by data, AI and advanced technology, EY teams help clients shape the future with confidence and develop answers for the most pressing issues of today and tomorrow.

EY teams work across a full spectrum of services in assurance, consulting, tax, strategy and transactions. Fueled by sector insights, a globally connected, multi-disciplinary network and diverse ecosystem partners, EY teams can provide services in more than 150 countries and territories.

All in to shape the future with confidence.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

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Fintech

Fintech Pulse: A Daily Dive into Industry Innovations and Developments

Published

7 hours ago

November 26, 2024

Peter Tolan

fintech-pulse:-a-daily-dive-into-industry-innovations-and-developments

The financial technology sector continues to evolve at a rapid pace, offering innovations that disrupt traditional paradigms. Today’s briefing underscores fintech’s diverse growth avenues: from substantial venture capital plays and strategic partnerships to groundbreaking implementations in lending. Here’s a closer look at recent developments shaping the landscape.

Synapse’s Comeback and Andreessen Horowitz’s Strategic Bet

Source: Axios
Synapse, a financial infrastructure company previously embattled by controversy, is staging a remarkable comeback, backed by none other than venture capital heavyweight Andreessen Horowitz (a16z). With this new infusion of funds, Synapse aims to consolidate its position as a premier platform for building financial services tools.

This resurgence demonstrates the resilience of the fintech ecosystem, where innovation often prevails over turbulence. Synapse’s renewed vigor also signals that top-tier investors remain bullish on infrastructural solutions pivotal to the future of digital finance. Andreessen Horowitz’s participation not only validates Synapse’s model but also underscores the VC giant’s enduring interest in fintech infrastructure, even amid global economic uncertainties.

Analysis:
This partnership exemplifies the dynamism within fintech, highlighting the interplay of innovation, capital, and resilience. It also raises questions about the broader implications of giving second chances to firms with turbulent histories. While Synapse’s evolution could inspire others, it also places a spotlight on governance and accountability in high-growth sectors.

Israel’s Fintech Scene Gets a Boost with Investment in Finova Capital

Source: Calcalistech
Israeli fintech startup Finova Capital has raised an impressive $20 million in a funding round led by prominent institutional investors. This marks a significant milestone for the company as it seeks to expand its suite of financial solutions aimed at underserved markets.

Israel’s fintech ecosystem has long been recognized as a hub of innovation, and this latest investment only reinforces its global standing. Finova Capital’s focus on empowering smaller businesses and fostering financial inclusivity aligns with emerging trends where tech-driven solutions bridge critical gaps in financial services.

Analysis:
With this funding, Finova is poised to enhance its technological offerings while contributing to economic inclusion. However, the broader fintech industry will watch closely to see how the company leverages this capital amid increasing competition from regional and global players.

India’s Yubi Plans a Fundraising Push

Source: Bloomberg
Yubi, a prominent Indian fintech platform backed by Insight Partners, is reportedly preparing for a new fundraising round. Having already established itself as a leader in credit infrastructure, Yubi aims to bolster its offerings and expand its market footprint.

India’s fintech landscape is witnessing explosive growth, with platforms like Yubi playing a critical role in the credit ecosystem. Yubi’s planned fundraising reflects the broader appetite for scaling solutions that streamline credit access, particularly in emerging markets where traditional lending models often fall short.

Analysis:
This development highlights two key trends: the increasing reliance on credit platforms in high-growth economies and the strategic role of international investors like Insight Partners in driving fintech innovation. Yubi’s expansion plans could set a precedent for other regional fintech players seeking to scale amid global economic headwinds.

Provenir and Hastings Financial Services Win Global Recognition

Source: Business Wire
In a testament to the transformative power of digital lending solutions, Provenir and Hastings Financial Services have been jointly recognized for the Best Digital Lending Implementation at the IBSi Global Fintech Innovation Awards. This accolade underscores the success of their collaboration in modernizing the lending process through cutting-edge technology.

Provenir’s advanced decision-making platform and Hastings Financial Services’ lending expertise have delivered a solution that significantly enhances user experience, operational efficiency, and risk management. Such innovations highlight the increasing role of partnerships in advancing fintech’s digital transformation.

Analysis:
This recognition not only validates the efficacy of digital lending but also emphasizes the importance of partnerships in driving innovation. It signals to the industry that collaboration can be a powerful tool for staying ahead in a rapidly evolving marketplace.

Microf and Quantum Financial Technologies Forge New Alliances

Source: PR Newswire
Microf, a financial solutions provider, has announced a strategic partnership with Quantum Financial Technologies. This collaboration aims to expand lending solutions for contractors, providing streamlined access to capital for businesses in need of flexible financing options.

This partnership is a timely response to the growing demand for specialized financial products in niche markets. By leveraging Quantum’s technology, Microf can now offer more tailored solutions, particularly to contractors navigating complex financial requirements.

Analysis:
This development reflects a growing trend: the diversification of fintech offerings to serve specific market segments. As competition in mainstream fintech intensifies, targeting underserved niches could become a defining strategy for success.

Key Takeaways for the Fintech Ecosystem

Resilience in Fintech Funding: Despite economic uncertainties, venture capital continues to fuel innovative fintech players like Synapse and Finova Capital.
Regional Growth Stories: From Israel to India, fintech ecosystems are thriving, attracting global attention and investment.
Collaboration as a Catalyst: The success of partnerships like Provenir-Hastings and Microf-Quantum underscores the importance of strategic alliances.
The Power of Recognition: Awards like the IBSi Fintech Innovation Awards validate industry achievements, inspiring others to push the envelope.
Focus on Inclusion: Whether through credit platforms or lending solutions, fintech is playing a pivotal role in fostering financial inclusivity worldwide.

Looking Ahead: Challenges and Opportunities

The fintech sector’s journey is far from linear. Regulatory complexities, technological disruptions, and market volatility remain persistent challenges. However, as seen in today’s developments, the opportunities far outweigh the risks. By prioritizing innovation, collaboration, and inclusivity, fintech players can navigate the complexities of the global financial landscape.

This moment in fintech history is pivotal. It’s a time for bold decisions, strategic partnerships, and a commitment to bridging financial divides. As industry players rise to the occasion, the road ahead promises a future where technology and finance intertwine to empower individuals and businesses alike.

The post Fintech Pulse: A Daily Dive into Industry Innovations and Developments appeared first on News, Events, Advertising Options.

Fintech PR

BIZCLIK MEDIA LAUNCHES DECEMBER EDITION OF FINTECH MAGAZINE

Published

8 hours ago

November 26, 2024

CISION (PR Newswire)

The December edition of FinTech Magazine includes interviews with leading experts and executives from Alipay+, Marqeta & Flyfish

LONDON, Nov. 26, 2024 /PRNewswire/ — BizClik, the UK’s fastest-growing publishing company, has released the latest edition of FinTech Magazine.This publication is highly regarded by voices within the Financial Sector for its in-depth reports and interviews with prominent figures in the industry.

FinTech Magazine

This month’s edition features an exclusive lead interview with Flyfish C-Suite, Savvas Pashias, Shay Merary and Michael Zetser on how they have developed a platform for SMEs to access banking services, as traditional infrastructure struggles to meet increasing cross-border needs.

“The UniFi platform is inherently scalable, designed to growin line with a company’s expansion and service requirements” – Michael Zetser, CEO, Flyfish

The edition also contains extensive interviews with key thought leaders from Marqeta, Sidekick, PayU and more. Plus the Top 10: Decacorns

You can visit FinTech Magazine for daily news and analysis of the ever-changing financial industry.

About BizClik

BizClik is one of the fastest-growing digital media companies in the UK, host to a growing portfolio of industry-leading global brands and communities.

BizClik’s expanding portfolio includes Technology, AI, FinTech, InsurTech, Supply Chain, Procurement, Energy, Mining, Manufacturing, Healthcare, Mobile, Data Centre, Cyber, and Sustainability.

For more information, please visit our website.

View original content:https://www.prnewswire.co.uk/news-releases/bizclik-media-launches-december-edition-of-fintech-magazine-302316768.html