How venture capital is igniting Kazakhstan’s innovation and startup scene

Kazakhstan, Central Asia's largest economy, is undergoing a profound transformation, shifting from reliance on natural resources to embracing innovation and entrepreneurship. At the heart of this shift is the burgeoning development of capital markets, including  the venture capital (VC) ecosystem, fueled by initiatives like the Tumar Venture Fund.

 Established with the support of the World Bank's Fostering Productive Innovations (FPIP) Project and the the Ministry of Artificial Intelligence and Digital Development of the Republic of Kazakhstan, this bold initiative  positions Kazakhstan to become a regional powerhouse for technological innovation.

Fueling Growth Through Partnerships

One of the most exciting aspects of the Tumar Venture Fund is its unique capital structure. For every dollar allocated by FPIP, the Fund's management company, White Hill Capital Ltd., matches that dollar with private investor contributions. This blended financing model has already raised the Fund’s size to $20 million, with plans to reach an ambitious $50 million.

As a result, this approach has attracted international attention, fostering strategic global partnerships with Saudi Arabia’s National Program for IT Development (NDTP), the Dubai International Financial Centre (DIFC) Innovation Hub, and the Technological University of Tajikistan.

From Startup Dreams to Success Stories

For entrepreneurs, this support is life changing.

• Zypl.ai, once a small AI startup, has evolved into a global fintech partner for more than 60 banks across 20 markets. Its founder, Azizjon Azimi, credits Tumar’s backing for accelerating product innovation and global opportunities.
• Push30, a B2B corporate health benefits platform, expanded beyond Central Asia into Saudi Arabia after graduating from the Al-Farabi Scale Up Accelerator. Its founder, Adil Gasimov, emphasizes that the partnership provided both capital and mentorship, empowering his team to take risks.
• Codiplay, an edtech innovator, teaches children programming, robotics, and circuitry through a smartphone-based platform. Since White Hill Capital’s seed investment in 2023, its valuation has jumped from $10 million to $50 million. Recognized by the UN as a Digital Public Good, Codiplay has signed an agreement with Prince Sultan University in Saudi Arabia to roll out its methodology.
• JobEscape, another edtech startup, offers a platform that gives freelancers access to a wide range of APIs and AI tools with a single subscription. After pivoting from a “freelancing toolkit” to developing AI agents, the company has boosted retention and is now positioning itself at the forefront of applied AI solutions.
• Garderob, a circular fashion resale platform, enables users and brands to resell items through C2C and B2B channels. Active in Kazakhstan and expanding into Europe, Garderob has already partnered with 14 EU-based brands.

These stories illustrate how venture capital is not only building businesses but also creating jobs, strengthening skills, and fostering a culture of entrepreneurship across the region.
 

Scaling Beyond Borders

Inspired by another activity of the FPIP project – the Silkroad Innovation Hub in Silicon Valley - Tumar’s vision extends far beyond Central Asia, focusing on expansion into the Middle East and North Africa (MENA). The Al-Farabi Innovation Hub  in Saudi Arabia now serves as a launchpad for Kazakhstani startups entering this dynamic market.

Although still in its early stages, the hub is already fostering partnerships and creating pathways for global reach. Through collaboration with universities as well as mentorship and accelerator programs, the fund is helping young innovators transform ideas into viable businesses.

Meanwhile, transparent selection processes, demo days, and training initiatives are equipping the next generation of tech entrepreneurs with the skills to compete globally. This expansion highlights Tumar’s long-term commitment to developing internationally competitive businesses.

Clearing the Roadblocks

Despite Tumar’s success, challenges remain. Regulatory barriers and bureaucratic inefficiencies continue to hinder startup growth and discourage foreign investment. To address these issues, Tumar is leading the establishment of the Kazakhstan Association of Venture Capital and Direct Investment, which will advocate for policy reforms aimed at improving the country’s investment climate.

Kazakhstan's position in VC ranking has been improving over the years, but it still lags behind similar economies.

The World Bank remains deeply committed to supporting Kazakhstan’s development through policy advice, financing instruments, and knowledge-sharing initiatives – particularly in the areas of innovation and entrepreneurship.
 

Shaping Kazakhstan’s Innovation-Driven Future

The Tumar Venture Fund is far more than a financial initiative. By empowering entrepreneurs, fostering talent, and connecting local innovation to global markets, venture capital is fueling Kazakhstan’s entrepreneurial spirit. With strong partnerships and a clear long-term vision, the country is building a future where innovation drives growth and opportunity.

And this is just the beginning.