Landlocked in the heart of Central Asia, creative entrepreneurs of Kyrgyzstan develop their opportunities in export of technology and creative services. While traditional sectors such as trade, mining, garment, agriculture and services form the backbone of the nation’s economy, a new wave of entrepreneurs has set their sights on technology and creative ventures to reshape the local business ecosystem.
Software Development: Pioneering Innovations
At the forefront of Kyrgyzstan's technological progress are software developers who have transformed the ecosystem from a small group of enthusiasts into a thriving software development community. Leveraging their competitive skills and pricing strategies, local software developers have gained global recognition, serving clients from around the world. Thanks to the reliable services provided by local developers, international software development companies are eager to establish offices in Kyrgyzstan, while numerous local developers work remotely for companies worldwide.
The flourishing ecosystem has been made possible with the support of sectoral stakeholders and associations, including the High Technology Park of the Kyrgyz Republic and the Kyrgyz Software and Service Developers' Association. Reports from both organisations indicate that Kyrgyzstan's software developers provide services to clients in the United States, Russia, Cyprus, the United Kingdom, and other countries. In 2022, registered companies generated over $47 million through service exports, and the projected revenue for 2023 is expected to surpass $89 million. By the end of 2022, HTP counted over 260 resident companies and individual developers, with an anticipated growth in 2023 due to the increasing local developer community and relocated professionals.
Start-ups: Unicorn Dream
While Central Asia as a whole seeks its first unicorn, Kyrgyzstan has several potential candidates in the pipeline. Because of its small domestic market, start-up teams from Kyrgyzstan are actively targeting global markets with their innovative ideas, leveraging the necessary experience and skills to develop internationally successful ventures. Ventures like Dolon, Enji.ai, Appboxo, and Namba One have attracted investments from regional funds and excelled in start-up competitions.
The team at Growave chose a different path that has proven successful, as they develop apps for the Shopify platform and have received positive recognition from clients around the globe.
Other local teams are finding success by servicing the domestic market and expanding within Central Asia. The projects initiated by Namba have pioneered multiple services in Kyrgyzstan and Central Asia, setting the trend for many start-ups in ecommerce and B2C services. Recently the locally developed services are being replaced or acquired by global start-ups as Glovo and Yandex.
Venture Funding: Regional Collaboration
Kyrgyzstan's investment landscape is evolving, yet potential investors often prioritize projects within traditional sectors. The venture capital sector requires a more robust foundation in local legislation, which is currently under review by multiple stakeholders, with anticipated changes on the horizon.
In the interim, local start-ups are actively seeking funding from regional funds, particularly in Kazakhstan, with its complex and dynamic ecosystem.
Ecosystem Support: Bridge and Boost
Software developers and start-ups in Kyrgyzstan receive robust support from ecosystem partners, with the High Technology Park of the Kyrgyz Republic and the Kyrgyz Software and Services Developers Association playing pivotal roles. These sectoral stakeholders provide comprehensive support, including assistance with legislation, service promotion, capacity building, and the establishment of connections between software developers and their target markets.
Technical support is readily available from various business accelerators, such as PEAK, Accelerate Prosperity, John Galt, EBRD Star Venture, offering essential expertise and seed funding for prospective ventures. These initiatives are specifically designed to give start-ups the boost they need and help bridge the gap to foreign markets and funding. Simultaneously, local entrepreneurs actively participate in global competitions and initiatives facilitated by regional hubs.
These initiatives are made possible through the support of international development partners and foreign aid.
With a strong foundation in software development, a growing community of entrepreneurs, and unwavering support from local and international stakeholders, Kyrgyzstan stands firm on making a significant progress on the software development and start-up landscape.