Jasul Jumaev is the CEO and founder of Uzum.
Uzbekistan’s digital revolution is thriving in a country where the majority of individuals now use digital payments every week.
With a young and growing population of 37 million people, 40% of whom are under the age of 25, Uzbekistan is rapidly establishing itself as a digital and entrepreneurship hub in Central Asia. This country is ready for innovation. According to KPMG data for 2022, the internet penetration rate in Uzbekistan has reached 77%, and the smartphone penetration rate is 76%. The country’s e-commerce market is expected to grow at a compound annual growth rate (CAGR) of 41.4% to 47.4%, reaching $1.8 billion to $2.2 billion by 2027.
While the market potential is vast, it has faced historic challenges, including a large proportion of the population not having a bank account as of 2021. However, digital payments are now more prevalent, with 86% of individuals and 92% of small businesses using them. Multiple payments per week. These factors create a fertile environment for entrepreneurs and investors interested in fintech and e-commerce solutions.
Four lessons for emerging market entrepreneurs
Our journey in building a technology ecosystem in Uzbekistan provides valuable insights for companies looking to scale in emerging markets. Here are four important lessons from our experience.
1. Blend local and global expertise
Successful business in emerging markets requires a balanced team that combines local knowledge with global technical capabilities. In Uzbekistan, where e-commerce is still a nascent concept, team members with deep cultural insight were essential to understanding consumer behavior and preferences. At the same time, international experts brought the necessary technical and operational expertise to establish a scalable system. At Uzum, we prioritize hiring the best “A players” who are excellent specialists in their respective fields. This approach ensures that our team members, whether local or global, demonstrate exceptional skills and a shared commitment to success.
2. Build resilient teams
Meeting the challenges of emerging markets requires more than technical skills. We need resilience, adaptability and a shared vision for long-term impact. We focus on recruiting talent with a growth mindset and a strong commitment to transforming Uzbekistan’s digital economy. We also foster a culture of growth where all team members have access to professional development and advancement opportunities. Fostering this culture allows our employees to contribute to the company’s success and grow with the company’s success.
3. Focus on solving customers’ real problems
Understanding and addressing specific customer pain points is critical to our success. For example, limited product variety, poor access in remote areas, and lack of convenient delivery options were major obstacles for customers in Uzbekistan. We met these challenges head-on by building an e-commerce ecosystem that can manage millions of SKUs and guarantee 24-hour delivery.
Additionally, we have introduced fintech solutions tailored to local needs. This year, we launched our own payment card to make digital transactions more accessible and reliable across the country. For customers looking for flexibility, we offer a ‘buy now, pay later’ service to help you manage your finances more effectively. These innovations not only helped customers solve immediate problems, but also laid the foundation for long-term loyalty and growth.
4. Invest in education and building trust
In emerging markets, educating both customers and partners is as important as launching innovative solutions. To fill the region’s e-commerce knowledge gap, we established the Seller Academy to provide resources on e-commerce basics, sourcing, and marketplace operations. We also collaborated with local and international organizations with similar goals.
For our customers, we have focused on building trust by offering competitive prices, ensuring a smooth first-time purchase experience, and maintaining high quality service standards. To further increase trust, we leveraged the fintech ecosystem to offer services that simplify and secure transactions. Seamless integration with our e-commerce platform and competitive pricing on fast-moving items drives first-time purchases and strengthens customer confidence. This two-pronged approach not only lowered the barrier to entry, but also enabled us to achieve global benchmark levels of customer retention within the first year.
wider impact
Uzbekistan’s digital economy is at a turning point. The government’s focus on digital transformation, coupled with a young, tech-savvy population, is propelling the country’s trajectory as an emerging leader in Central Asia’s technology scene.
While challenges remain, including regulatory hurdles and infrastructure gaps, there are also opportunities for companies looking to invest in long-term solutions. Emerging markets often have untapped potential and can foster creative business models that combine the right combination of innovation, adaptability and local knowledge. Entrepreneurs who are prepared to adapt and innovate in these environments have the opportunity not only to succeed, but also to contribute to broader economic and social progress.
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