TBC Bank Group will purchase the controlling stake in BILLZ, one of the largest SaaS platforms for retail automation in Uzbekistan, the TBC said in a statement.
Reportedly, the $12 million total worth of deal will be one of the largest in the Uzbek fintech sector in the past 30 years.
At phase I, the TBC will buy 53% stake for $9 million, and within two years, the stake will be raised to 60%. After the completion of the deal, BILLZ is valued at $20 million.
The deal will be closed after receiving the necessary permits from regulators.
As part of the agreement, BILLZ will be integrated into the TBC Uzbekistan ecosystem, but will continue to operate under its own brand. The company's management and team will keep their positions and will develop the product line. An option to buy out the remaining 40% in three years has also been signed.
“Since entering the Uzbek market in 2019, TBC has played a key role in the development of the country's fintech sector,” said Nika Kurdiani, CEO of TBC Uzbekistan. “A strategic partnership with the market leader BILLZ will help us further support the dynamically developing startup community of Uzbekistan.”
According to Rustam Khamdamov, the CEO and co-founder of BILLZ, the deal opens up new opportunities for thousands of small businesses. “Cooperation with TBC Uzbekistan significantly expands our capabilities, allows us to offer clients new services that are relevant to them and accelerate the implementation of strategic tasks in the region,” he noted.
BILLZ specializes in automating retail processes and serves more than 4,000 retailers in Uzbekistan. It combines solutions for sales, warehouse management, CRM, e-commerce and analytics, and also integrates with marketplaces and social networks.
In addition to Uzbekistan and Kazakhstan, BILLZ has begun working with clients in Kyrgyzstan, Tajikistan, Georgia and Azerbaijan. In September last year, the company attracted investments of $ 500 thousand with a total valuation of the startup at 10 million $. The round was led by the Kazakh factoring company FinQ, venture funds Activat VC and Aloqa Ventures.
Through the platform, stores can attract unsecured financing of up to $120 thousand. According to Khamdamov, as of September last year, the total amount of funds allocated jointly with the partner bank was approaching $10 million.
TBC Bank Group intends to strengthen its position in the small and medium business segment through this deal. BILLZ clients will have access to TBC Bank banking products and Payme digital payment services.
Recall that the Central Bank of Uzbekistan has been tightening requirements for microloans since July 24. The share in banks' portfolios should not exceed 25%. However, this figure is much higher at TBC. Therefore, the regulator has given banks (TBC and Anorbank) time until January 1, 2029, to gradually reduce the share of microloans in their portfolio to the required level. The deal with BILLZ will help TBC diversify its loan portfolio.
