Uzbekistan is witnessing a rise in technology startups with global ambitions, and kpi.com stands as a prime example of a company that originated in Tashkent and successfully expanded into an international business.  The project's founder, Muzaffar Karabaev, has followed a journey from working at Shell and studying at Oxford to establishing his own IT team. In this interview, he shares insights into how he transformed an idea into a profitable product, the reasoning behind his decision to decline a $1.5 million investment, and his motivations for actively expanding his business in Uzbekistan today.

How did the idea for kpi.com originate? What inspired you to develop business process management software?

My journey in IT and outsourcing began in the early 2000s. My first ventures, Uzreport.com and Uzjobs, were inspired by the digital revolution driven by platforms such as Yahoo in 1999. However, my entrepreneurial aspirations were significantly reinforced during my MBA studies at the University of Oxford, where a fellow student introduced an innovative concept — an anti-fraud detection tool for the automotive industry, which later became Contego.com.

My Tashkent-based team developed the first MVP (minimum viable product), marking my true entry into the world of technology startups and entrepreneurship. By that time, I had already built a team of 30 developers working on outsourcing projects for the UK, ensuring a stable revenue stream. This financial security gave me the confidence to leave my corporate career and dedicate myself entirely to entrepreneurship. The idea for kpi.com emerged in 2008 and was initially conceived as a 360-degree assessment tool, drawing on my prior experience with online surveys.

In a previous interview, you mentioned that your experience at Shell and your involvement in launching Uzreport.com were pivotal. How did these experiences shape your entrepreneurial journey?    

My tenure at Shell, particularly in the M&A (mergers and acquisitions) department, was transformative. It provided me with a deep understanding of investment evaluation, startup financing, and operational strategies. My role as an analyst assessing fintech startups significantly strengthened my interest in entrepreneurship. Moreover, Shell sponsored my MBA studies at Oxford, which opened invaluable opportunities for networking and client acquisition. Leaving Shell was not an easy decision, but my passion for building my own business prevailed. Thanks to a strong client base secured through outsourcing contracts, I confidently transitioned into entrepreneurship — a decision I remain proud of to this day.  

The Beginning and First Steps

How did you assemble the initial team for kpi.com? What were the main challenges in the early stages?

The core team of kpi.com was formed within my existing company, Datasite Technology, which already employed 30 highly skilled developers. We selected five specialists to work exclusively on the core product, later expanding the team to ten developers by 2011.    

The primary challenges included resource allocation, a limited marketing budget, and delays in the product launch — we aimed to perfect five core modules before the official release in 2012. Initially, we targeted the UK market, but quickly realized that competing against established industry players with significantly larger marketing budgets would be difficult. This prompted us to pivot toward the Middle East, where market entry required a smaller financial commitment.  

Why did you choose to enter the European market instead of focusing on Uzbekistan? How did this decision influence product development?

Our initial focus on the UK stemmed from my professional network and existing client base. However, we soon discovered unexpectedly high demand from the Middle East, particularly in the UAE, Saudi Arabia, and Oman. Recognizing this opportunity, I relocated to the UAE in 2014, where I immersed myself in the local business culture for the next eight years. This decision had a profound impact on the development of kpi.com: we prioritized customer-centricity and flexible support, both of which are critical for doing business in this region.   

Mistakes and Lessons Learned

You declined a $1.5 million investment in the early stages. How do you assess this decision now? What would you have done differently?

Turning down a $1.5 million investment in 2012 became a valuable lesson in humility and strategic foresight. At the time, I was convinced that we could achieve sustainable growth independently. However, I later came to appreciate the true value that external investors bring — not only in terms of capital but also through their industry connections, market expertise, and ability to accelerate market expansion through aggressive marketing. In hindsight, accepting that investment would have significantly expedited the growth of kpi.com. This experience taught me the importance of collaboration and being open to partnerships from the very beginning, even at the MVP stage.   

What other mistakes did you make while developing kpi.com, and how did they contribute to your growth as an entrepreneur?

Another critical mistake was stepping away from operational management too early. I delegated leadership to my teams without setting clear growth objectives, which made it evident that the founder’s direct involvement is crucial at this stage. However, the strong foundation of kpi.com provided me with the opportunity to launch other ventures. One such initiative was Wing.ae, which subsequently secured investment from Souq.com (acquired by Amazon). 

Competition and Product Differentiation

How do you compete with other players in the market? How do you attract and retain customers?  

The primary competitors of kpi.com include flexible platforms such as Bitrix/1C, Odoo, and Zoho. What sets kpi.com apart is its high degree of customization, dedicated customer support, accessibility, and adaptability to the needs of small and medium-sized businesses. Our ability to provide deep integration and localized solutions, which are often unavailable in larger platforms, has fostered long-term customer loyalty, with many clients remaining with us for over a decade.

Personalized customer support is the cornerstone of our business model, particularly in markets where this level of engagement holds cultural significance. I see Uzbekistan and several African nations as promising markets for expansion in the near future. By combining a human-centric approach with AI-driven technologies, we aim to meet and exceed customer expectations, thereby strengthening long-term loyalty. 

On Expanding into the Uzbek Market

With the support of the government of Uzbekistan, along with the initiatives spearheaded by President Shavkat Mirziyoyev and Minister of Digital Technologies Sherzod Shermatov through IT Park, we are actively entering the local market. To expedite digitalization, we are offering companies discounts of up to 75%. Additionally, we provide opportunities to explore demo versions and begin using our platform free of charge.

At present, we have over 100 corporate users in Uzbekistan. Our goal is to further expand our presence and contribute to the country's ongoing digital transformation. We also plan to establish laboratories at universities to host hackathons and ERP projects, with the aim of developing local talent. Currently, we are in negotiations with New Uzbekistan University and the recently established American University in Tashkent.

Furthermore, I am dedicated to fostering regional development, particularly in Namangan, through IT companies such as SiteLabs and Datasite, which are members of IT Park. Our overarching objective is to create robust regional ecosystems, despite the challenges in attracting specialists in Namangan who are equipped to work on global-level projects. In collaboration with IT Park, we are formulating initiatives to stimulate employment in regions beyond Tashkent.

Four Pieces of Advice for Aspiring Entrepreneurs

1. Conduct thorough market research. Immersing oneself in the business landscape of target countries is vital for gaining a deep understanding of customer needs and establishing long-lasting relationships.
2. Build a strong team. It is essential to have skilled co-founders with technical expertise, including the ability to maintain code quality.
3. Maintain flexibility and financial planning. Strategic adaptability and the integration of new technologies, such as AI, will help your company remain competitive.
4. An increasing number of AI prompts are emerging. It is crucial to incorporate AI at every stage of product development and integrate it into everyday tools. Those who do this effectively will undoubtedly stand out!

The journey of kpi.com is a prime example of how an Uzbek startup successfully found its niche in the global market, navigated through challenges, and returned to its home country with newfound opportunities. With the support of IT Park Uzbekistan, the company is now assisting local businesses in implementing advanced ERP solutions, while its founder is actively investing in the development of regional IT hubs.

Do you want to replicate this success? Start small, but think globally — and do not hesitate to adjust your strategy when needed!

If you have a startup idea, or if you are an existing startup seeking support, apply to StartupBase. 

If you are an IT company aiming to expand internationally, apply for the Local2Global program by IT Park.