UZUM became the first unicorn of Uzbekistan

Uzum, an e-commerce startup that provides online shopping, fintech solutions and grocery delivery to millions of customers in Uzbekistan, has become the country's first unicorn with a $114 million investment and $1.16 billion valuation.
Uzbekistan is fertile ground for startups, given that nearly 60% of its 35 million-plus population is under the age of 30. The country also has a near 100% literacy rate (according to the government), over 76% internet access and over 75% smartphone access. In 2020, there were about 1,200 startups in the Central Asian country, 85% of which are in the initial stage. According to the calculations of the Asian Development Bank, fintech startups dominate the market with a 30% share, followed by e-commerce startups with 27%.
However, there is a shocking lack of e-commerce services in the country, which may be one of the reasons why the sector accounts for only 2.2% of Uzbekistan's total retail market by December 2022. According to Uzum co-founder and CEO Cesur Jumayev, Uzbeks used to shop online through social media apps like Instagram, TikTok and Telegram. Customers interacted with sellers in groups on social platforms, had limited stock keeping units (SKUs) and no logistics to speak of.
"It was a surprise for us to see that the penetration of smartphones is high and the telecommunications infrastructure is available, but there is no electronic commerce or the necessary fintech," J. Jumayev said in a statement to the media.
Jumayev clearly realized the potential that a company can do in Uzbekistan what Amazon has done in many other countries. Uzum started by setting up pick-up points to offer its logistics, staff and next-day delivery.
By the end of this year, Uzum plans to consolidate all of its businesses into two super programs: one for consumer-focused offerings and one for business-focused products. It also aims to launch the country's "largest" logistics complex for e-commerce in June, initially planned to cover 112,000 square meters and expand to more than 500,000 square meters over the next few years.