Top Stories March 27: Georgia’s fintech market poised to double

GEORGIA’S FINTECH MARKET

Georgia’s fintech market is projected to double from $1 billion in 2023 to $2 billion by 2027. From 2017 through 2022, this market increased more than eight-fold. [Source: Caucasus Business Week]

Georgian-based startup Brandgate, which helps businesses automate their branding processes and thus reduce their spending on marketing through artificial intelligence (AI), will start operations in the US. The company is focused on the American market because US businesses collect enough structured data needed for an AI-powered platform. [Source: Caucasus Business Week]  

UZBEKISTAN’S EV PUSH

Uzbekistan imported 789 electric cars in January and February 2023, which is 3.5 times higher than in the corresponding period of 2022. In February, it was 397, a record high, while the previous record was seen in January reflecting a continued growth of EV transportation in the country.

Uzbekistan launched an ambitious privatization program offering investors to buy state-owned stakes in more than 1,000 enterprises and more than 1,000 real estate objects. The companies with stakes on sale include businesses in metals, financial, and telecommunication sectors. [Source: Kapital.uz]  

UKRAINE’S UK DEAL

The UK government and the government of Ukraine signed a deal to boost the investment relationship between the two countries and assist Ukraine in wartime. According to the agreement, Ukrainian companies can “trade more efficiently with the U.K. through electronic transactions, e-signatures, and e-contracts,” while the U.K.’s financial companies will be involved in the postwar reconstruction of Ukraine. [Source: UK government]

This year is going to be more challenging for the Ukrainian IT market than even 2022 due to lower activity of companies and revenue, according to Maxim Istchenko, the founder of Ukraine’s company Djinni and the platform for coders Dou.ua. The biggest challenge comes from the Russo-Ukrainian war that has no end in sight, in addition to cooling global markets. [Source: Highload]

US-based Takeoff Technologies that specializes in the automation of e-commerce businesses has closed its office in Kyiv, firing a reported 50 to 80 coders. Alleged reasons for the closure are demands from investors who think that an office in Eastern Europe brings unnecessary risks and reduced demand for such specialists. [Source: dou.ua]

KYRGYZSTAN’S RENEWABLE ENERGY

Kyrgyzstan plans to teach children IT subjects starting from pre-school ages and through their school years, with modeling and coding being taught at schools and with IT education centers being available at each town. One IT specialist generates an annual income of $30,000 to $40,000 for the national economy making IT education one of the most prospective areas for government investments. [Source: Economist.kg]

The state-run Green Energy Fund of Kyrgyzstan will get land sites for renewable energy projects for an unlimited period of time through a simplified procedure. The country seeks to fill the gap in its energy balance and reduce its dependence on nonrenewable sources of energy. [Source: Economist.kg]

NOTABLE STARTUPS

Germany-based, Russia-founded fintech startup Monite, which develops software for automation of expenses, attracted $5 million from investors, including US-based Third Prime. The funding will be allocated to new product development for b2b payments and client growth. [Source: Forbes]

The founder of Russia-based GoExpert platform and the former CEO of Alfa Bank-owned crowdlending platform Potok Nikita Abramenko has launched Humo, a startup that allows small and medium-sized companies to borrow money from individuals. The platform started operations in Russia, Kazakhstan, Uzbekistan, Armenia, the United Arab Emirates, and Georgia. [Source: RB]

RUSSIAN ECONOMY UNDER SANCTIONS

Kazakhstan will tighten control over transit goods bound to Russia to avoid possible violations of sanctions imposed on Russia. Kazakhstan became one of gateways for goods delivered to Russia under the so-called parallel scheme. [Source: Financial Times]

The Italian government has blocked a takeover deal stopping Netherlands-based cloud services provider Nebius from buying Italy-based Tecnologia Intelligente due to alleged Nebius’s links to Yandex, a Russian Internet powerhouse. Yandex, its top-managers and owners were sanctioned because of providing its resources for Kremlin’s propaganda. [Source: Reuters] 

RUSSIAN BRAIN DRAIN

GoGlobal FORUM, a Russian major event for IT services exports, will be held on 21 and 22 April marking the desire of Russian companies to sell their products overseas despite challenging conditions. The forum’s organizers emphasized that discussions will feature the opportunities in the markets of Latin America, Africa, Asia, and the Middle East which are still open to Russian startups. [Source: VC]

Russian citizens founded 1,300 companies in Turkey in 2022, +670% to the previous year, as Turkey became one of the most popular destinations for Russians escaping from military call-ups or worsening business environments at home. The same trend is seen in the real estate market with Russians making up the quarter of all foreigners who bought houses in the country last year. [Source: Bloomberg]