Uzum, Click plan to merge to bolster Uzbekistan’s digital services

Uzum, the largest ecosystem of digital services in Uzbekistan, and Click, a prominent payments company in the country, have revealed plans for a prospective merger.

The agreement, subject to deal closing procedures, would result in Click’s shareholders obtaining a minority shareholding in Uzum’s parent company and securing representation on the board of directors. While Click’s teams would maintain operational autonomy, they would gradually integrate into the Uzum ecosystem.

The merger aims to solidify Uzum’s dominant position in key verticals, including Finance, Payments, and Commerce, while creating a combined user base of over 13 million people in Uzbekistan.

Click, the widely adopted payment system in Uzbekistan, currently serves one in three residents of the country. With over 37 million transactions processed monthly and the Click application downloaded by nine million users on iOS and Android, the companies envision developing a super app that integrates various services within the Click ecosystem.

The existing Uzum ecosystem comprises Uzum Market, a leading marketplace offering a diverse range of products with one-day delivery, Uzum Bank, and other banking services, Uzum Nasiya, a shari’ah-compliant Buy Now Pay Later (BNPL) installment service, and Uzum Tezkor, an online food delivery platform for restaurants and groceries.

Uzum and Click announce prospective merger to strengthen dominance in Uzbekistan’s digital services landscape. Image courtesy of PRNewsfoto/Uzum Group.

Djasur Djumaev — Uzum CEO said: “A combination of favourable factors, including positive demographics and growing penetration of smartphones / mobile internet, provides a strong runway for explosive growth of digital services in Uzbekistan.

“Our mission is to ensure that throughout Uzbekistan, people have access to a wide range of goods, convenient payment options, and fast, technology-driven access to financial services.

“There is no doubt that the combination of the two outstanding teams with unique operational know-how, top-notch customer experience and best-in-class talent pools represents a critical milestone towards reaching this goal. This transaction will create substantial value, through generation of unique synergies leading to an enhanced customer experience.”

By joining forces, Uzum and Click aim to leverage their respective strengths and expertise to further enhance the digital services landscape in Uzbekistan. The prospective merger not only bolsters Uzum’s position across key sectors but also presents the opportunity to develop an integrated platform that streamlines user experiences and consolidates multiple services into one comprehensive ecosystem.

Ulugbek Rustamov — Click CEO said: “During negotiations with Uzum, we saw that our strategies and goals align. Therefore, we are thrilled about merging with the Uzum ecosystem and see great prospects.

“The combination of two major players with such a wide range of capabilities will allow us to leverage each other’s resources and tackle a new ambitious task – creating a product that has no equals in the country.

“Click will, of course, continue working on its current plans, including a lending project, a range of initiatives integrating with government services, servicing the tourism sector, and much more.”