Fintech
Is Kazakhstan The Next Hot Spot for Fintech?
Over the past years, venture capital (VC) funding in Caucasus and Central Asia (CCA) has increased substantially, growing by more than fivefold between 2018 and 2023, a new report produced by RISE Research in cooperation with EA Group and BGlobal Ventures, as well as Crunchbase, the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan, and KPMG Caucasus and Central Asia, says. Across the region, fintech has risen to prominence, becoming one of CCA’s investors preferred investment targets.
The “Venture Capital in Central Asia and the Caucasus 2023” report, released in March 2024, provides an overview of the VC landscape across the CCA region, outlining emerging trends and favored sectors in 2023.
According to the report, VC funding in CCA reached US$110 million in 2023, up by 450% from a mere US$20 million in 2018. This growth has been driven by the region’s expanding startup ecosystem, which saw its number of tech startups grow sixfold while the number of active VC investors in the region increased by nearly threefold during the period, data from the report show.
The VC ecosystem in the CCA region over the past five years, Source: Venture Capital in Central Asia and the Caucasus 2023, Mar 2024
Fintech Kazakhstan on the Rise
In 2023, fintech emerged as one of the most prominent sectors in the region. Though the report doesn’t share specific amounts, data show that fintech was the top startup sector in most of the countries across the region, and most particularly in Kazakhstan and Uzbekistan, two of CCA’s largest VC markets.
In 2023, Kazakhstan secured US$80 million in VC funding, accounting for nearly 73% of all VC funding in CCA. Of that amount, about 40% was raised by fintech startups, making the segment the favorite of investors in the country.
VC deals in Kazakhstan by sectors, 2023, Source: Venture Capital in Central Asia and the Caucasus 2023, Mar 2024
Fintech Among Investor’s Favourite in Central Asia
A similar trend was observed in Uzbekistan where fintech startups secured a total of US$2.75 million through 12 deals in 2022 and 2023, making fintech the most prevalent among sectors in the domestic startup scene.
Uzbek startups secured a total of US$6.3 million in VC funding in 2023, a sum that makes Uzbekistan the third biggest market in CCA in terms of VC funding.
Uzbek VC deals by sectors, 2022-2023, Source: Venture Capital in Central Asia and the Caucasus 2023, Mar 2024
Fintech was also the preferred investment target in Tajikistan where the sector secured much of the US$3.1 million VC funding raised by the country’s tech startups in 2022 and 2023. Zypl.ai, an early-stage startup that develops a credit scoring tool powered by artificial intelligence, accounted for nearly all of disclosed VC investments in Tajikistan in 2022 and 2023, raising US$1.1 million in a pre-seed round in September 2022, and US$2 million in December 2023, the data show.
Tajikistani VC funding in 2022 and 2023, Source: Venture Capital in Central Asia and the Caucasus 2023, Mar 2024
Georgia, the second largest VC market in CCA, also recorded strong interest in fintech last year, with some of the country’s biggest rounds being secured by companies in the sector. Pave Bank, a new digital bank, raised US$5.2 million in December 2023; Hexacore, a blockchain and Web 3.0 publisher, secured US$3.5 million in seed funding in August 2023; and CityPay.io, a digital currency payment solution, raised US$2 million in August 2023.
Together these four rounds secured US$10.7 million, representing nearly half of what was raised in Georgia last year.
Georgian VC funding in 2022 and 2023, Source: Venture Capital in Central Asia and the Caucasus 2023, Mar 2024
VC funding in Caucasus and Central Asia
Data from the report reveal that Kazakhstan currently stands as the biggest market for VC funding in CCA and the most developed startup ecosystem. Since 2018, the country’s VC market has increased considerably, growing by 6.6 times to US$80 million in 2023. Meanwhile, average deal size grew 3.8 times to amount to US$1 million in 2023, an indication of the maturing of the Kazakh startup ecosystem.
However, the Kazakh tech startup ecosystem remains nascent with the bulk of 2023’s VC deals being pre-Seed (52%) and Seed (38%) rounds. Series A and B rounds accounted for 10% of the total number of deals in 2023 and Series C rounds were non-existent.
Kazakhstan VC volume, 2018 – 2023, US$ million, Source: Venture Capital in Central Asia and the Caucasus 2023, Mar 2024
The relatively low levels of investments in CCA imply that plenty opportunities still exist for investors alike.
A survey of more than 100 startups in the region and insights drawn from interviews with over 30 markets leaders reveal that industry participants are bullish on the growth prospect of VC funding in CCA.
40% of the investors polled expect significant growth in VC investment in 2024. This growth will be driven by the launch of new venture funds and the emergence of new business angels, with 60% of respondents expecting the investor pool in the region to grow significantly in 2024.
Investors cited fintech as the most promising sector for VC investments in CCA in the near future (30%), followed by e-commerce (15%), agrotech (15%) and medtech (10%).
The post Is Kazakhstan The Next Hot Spot for Fintech? appeared first on HIPTHER Alerts.
As we close out 2024, the fintech industry continues to deliver headlines that underscore its dynamism and innovation. From IPO aspirations to groundbreaking regulatory milestones, today’s updates highlight the transformative power of fintech partnerships, regulatory evolution, and disruptive technologies. Here’s what you need to know.
Chime’s Quiet Step Toward Public Markets
Chime, the U.S.-based financial technology startup best known for its digital banking services, has taken a significant step by filing confidential paperwork for an initial public offering (IPO). As one of the most valuable private fintechs in the U.S., Chime’s move could potentially signal a renewed appetite for fintech IPOs in a market that has been cautious following fluctuating valuations across the tech sector.
With a valuation that reportedly exceeded $25 billion in its last funding round, Chime’s IPO could set a new benchmark for the industry. Observers note that its strong customer base and revenue growth may make it an appealing choice for investors seeking to capitalize on the digital banking boom. However, the timing and success of the IPO will depend on broader market conditions and the regulatory landscape.
Source: Bloomberg
ZBD’s Pioneering Achievement: EU MiCA License Approval
ZBD, a fintech company specializing in Bitcoin Lightning network solutions, has made history by becoming the first to secure an EU MiCA (Markets in Crypto-Assets Regulation) license. This landmark approval by the Dutch regulator positions ZBD at the forefront of compliant crypto-fintech operations in Europe.
MiCA, which aims to harmonize the regulatory framework for crypto-assets across the EU, has been a focal point for industry players aiming to establish legitimacy and expand their offerings. ZBD’s achievement not only validates its operational rigor but also sets a precedent for other fintech firms navigating the evolving regulatory landscape.
Industry insiders view this as a strategic advantage for ZBD as it broadens its footprint in Europe. By leveraging its regulatory approval, the company can accelerate its product deployment and establish trust with institutional and retail users alike.
Source: Coindesk, PR Newswire
The Fintech-Credit Union Synergy: A Blueprint for Innovation
The convergence of fintechs and credit unions continues to reshape the financial services ecosystem. Collaborative initiatives, such as the one highlighted in the recent partnership between fintech innovators and credit unions, are proving to be a potent force in delivering tailored financial solutions.
This “dream team” approach allows credit unions to leverage fintech’s technological expertise while maintaining their community-focused ethos. Key areas of collaboration include digital payments, personalized financial management tools, and enhanced loan processing capabilities. These partnerships not only enhance member engagement but also enable credit unions to remain competitive in an increasingly digital-first financial environment.
Industry analysts emphasize that such collaborations underscore a broader trend of traditional financial institutions embracing fintech-driven solutions to bridge service gaps and foster innovation.
Source: PYMNTS
Tackling Student Loan Debt: A Fintech’s Mission
Student loan debt remains a pressing issue for millions of Americans, and a Rochester-based fintech aims to offer relief through its cloud-based platform. This innovative solution is designed to simplify loan management and provide borrowers with actionable insights to reduce their debt burden.
The platform’s features include repayment optimization tools, personalized financial education, and seamless integration with loan servicers. By addressing the complexities of student loan management, this fintech is empowering borrowers to make informed decisions and achieve financial stability.
As the student loan crisis continues to evolve, solutions like this highlight the critical role fintech can play in addressing systemic financial challenges while fostering financial literacy and inclusion.
Source: RBJ
Industry Implications and Takeaways
Today’s updates underscore several key themes shaping the fintech landscape:
- Regulatory Milestones: ZBD’s MiCA license approval exemplifies the importance of regulatory compliance in unlocking growth opportunities.
- Strategic Partnerships: The collaboration between fintechs and credit unions demonstrates the value of combining technological innovation with traditional financial models to drive customer-centric solutions.
- Market Opportunities: Chime’s IPO move reflects a potential revival in fintech public offerings, signaling confidence in the sector’s long-term prospects.
- Social Impact: Fintech’s ability to tackle systemic issues, such as student loan debt, showcases its role as a force for positive change.
The post Fintech Pulse: Your Daily Industry Brief (Chime, ZBD, MiCA) appeared first on News, Events, Advertising Options.
Leading global payments platform SPAYZ.io has confirmed it will be attending iFX EXPO Dubai 2025 on 14 to 16 January. Exhibiting at Stand 64 at Trade Centre Dubai, SPAYZ.io’s team of professionals will be on hand providing live demonstrations of its renowned payment services for payment providers. Attendees will also receive exclusive insight into SPAYZ.io’s plans for 2025 alongside early early access to its upcoming plans for the new year.
SPAYZ.io delivers a host of payment solutions that leverage the latest technological innovations and open access to the fastest growing emerging markets across Africa, Europe and Asia. Over the past year, there has been huge demand for its Open Banking and local payment method services, alongside bank transfers, mass payouts, online banking and e-wallets.
Yana Thakurta, Head of Business Development at SPAYZ.io commented: “We look forward to once again participating at iFX Dubai to expand our network of partners and clients. It’s a fantastic way to kick off the year, connecting with thousands of industry leaders from FOREX platforms to trading companies, and everything in between.
“Our key goal for iFX Dubai EXPO 2025 is to expand our portfolio of solutions and geographies. We’re using this as an opportunity to partner with like-minded entities who share our ambition to provide payment solutions that are truly global.”
Come meet SPAYZ.io’s team at the Trade Centre Dubai at Stand 64. You can also book a meeting slot with a member of a team.
The post SPAYZ.io prepares for iFX EXPO Dubai 2025 appeared first on News, Events, Advertising Options.
Airtm, the most connected digital dollar account in the world, is proud to announce the addition of two distinguished industry leaders to its Board of Directors: Rafael de la Vega, Global SVP of Partnerships at Auctane, and Shivani Siroya, CEO & Founder of Tala. These appointments reflect Airtm’s commitment to innovation and financial inclusion as the company enters its next phase of growth.
“We are thrilled to welcome Rafael and Shivani to Airtm’s Board of Directors,” said Ruben Galindo Steckel, Co-founder and CEO of Airtm. “Their unique perspectives and proven track records will be invaluable as we continue scaling our platform to empower individuals and businesses in emerging markets. Together, we’ll push the boundaries of financial inclusion and innovation to create a more connected and equitable global economy. Rafael and Shivani bring a wealth of experience and strategic insight that will strengthen Airtm’s mission to connect emerging economies with the global market.”
Rafael de la Vega, a seasoned leader in fintech global partnerships and technology innovation, is currently the Global SVP of Partnerships at Auctane. With a proven track record of delivering scalable, impactful solutions at the intersection of fintech, innovation, and commerce, Rafael’s expertise will be pivotal as Airtm continues to grow. “Airtm has built a platform that breaks down barriers and opens up opportunities for people in emerging economies to connect to global markets. I am excited to contribute to its growth and help further its mission of fostering financial inclusion on a global scale,” said Rafael.
Shivani Siroya, CEO and Founder of Tala, is a pioneer in financial technology, renowned for empowering underserved communities through access to credit and essential financial tools. Her leadership in leveraging data-driven innovation aligns seamlessly with Airtm’s vision of creating more equitable financial opportunities. “Empowering underserved communities has always been at the core of my work, and Airtm’s mission resonates deeply with me. I’m thrilled to join the Board and work alongside such a dynamic team to expand access to financial tools that truly make a difference in people’s lives,” said Shivani.
The post Airtm Enhances Its Board of Directors with Two Strategic Appointments appeared first on News, Events, Advertising Options.
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