Early Foundations
1993: Vyacheslav Kim’s First Business
Vyacheslav Kim, born on June 12, 1969, in Almaty, Kazakhstan, graduated from the Physics and Mathematics School. Kim achieved remarkable success in economics and business through his entrepreneurial skills and logical thinking abilities. In 1993, he opened the “Planeta Elektroniki” store to develop electronics sales, transforming it into one of Kazakhstan’s largest retail centers in a short period.
2002: Acquisition of a Bank
In an effort to boost sales by offering credit to customers, Kim acquired the privatized “Kaspiyskiy” bank. However, his lack of experience in banking and credit management led to significant challenges. Reflecting on this, Kim stated:
“At the time, successful entrepreneurs were buying banks, so we followed suit. But we did not understand how the banking business operated.”
Partnership with Baring Vostok and Lomtadze
Realizing that he could not overcome these challenges alone, Kim sought help from the Baring Vostok fund. The partnership with the fund’s young financier, Mikhail Lomtadze, marked a turning point in Kaspi.kz’s history. Lomtadze, a Harvard MBA graduate from Georgia and founder of GCG Audit, brought invaluable expertise. In 2004, Kim and Lomtadze, sharing common values and visions, formed a partnership, with Kim selling a 51% stake in Kaspiyskiy bank to Baring Vostok.
Kaspi.kz: Strategic Transformations
Leadership Renewal: Lomtadze hired young professionals with international experience, revamping the bank’s management and improving the company’s operations.
Consumer-Centric Focus: Kaspi.kz shifted its focus from serving businesses to providing convenient financial services for consumers.
Collaboration with the Government: Kim established close relations with government leaders and began offering solutions tailored to public services.
Creation of an Ecosystem: Kaspi.kz transitioned from a traditional bank to a tech-driven company by introducing services such as:
- Payment systems via phone numbers or QR codes.
- A marketplace integrating online and offline shopping.
- Tax, education, and transportation payment integration into government services.
- Kaspi.kz and the Humo System: Attempt to Enter the Uzbek Market
- Currently, Uzbekistan, with its large population, presents significant opportunities for investors in Central Asia.
Withdrawal from Humo System Acquisition
2024: Kaspi.kz expressed interest in acquiring a 100% state-owned stake in Uzbekistan’s Humo national payment system. The company planned to enrich the system with innovative technologies to facilitate cashless payments and allocate significant investments for workforce development.
Later, Kaspi.kz decided to withdraw from the acquisition process, citing Uzbekistan’s rapidly developing economy and expressing the intention to explore future opportunities.
Regarding the potential outcomes of acquiring the payment system, it was noted that while the sale of national companies could increase their market valuation, there was a risk of higher payment system fees in the case of monopolization. The privatization of the Humo system continued, with Paynet acquiring Humo for $65 million. Paynet was founded in 2005 by Botir Arifjanov.
Thoughts
In general, the question arises of whether selling state-owned payment systems to foreign companies is appropriate. The ongoing debates highlight potential economic risks. In open-market economies, this question has a clear answer: ownership of a payment system holds little importance. However, if a single company controls a payment system, bank, and payment institution, this could lead to absolute economic monopolization.
It was also revealed that another major IT company participated in the Humo privatization process alongside Kaspi.kz but withdrew from bidding. However, the offered prices were not disclosed.
Additionally, in October 2024, Kaspi.kz reached an agreement to acquire a 65% stake in the Turkish e-commerce platform Hepsiburada for $1.127 billion. This deal is expected to be finalized in the first quarter of 2025.
Commenting on the deal, Lomtadze said:
“The Turkish market is attractive to us due to its structural and economic similarities with Kazakhstan. The market size, with a population of over 85 million, is critically important for us. However, the main determining factor was the company itself. Hepsiburada has a strong management team and focuses on creating services that improve lives.”
In conclusion, Kaspi.kz is wished success in its activities, while emphasizing that avoiding personal mistakes and ensuring transparency in privatization processes can create a beneficial competitive environment for the development of any state.
Prepared by Laylo Khondamirovna
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