Steppe Ahead – The Central Asia Column
Author: Thorsten Gutmann
A remarkable step toward economic integration is underway in Central Asia. Kazakhstan's Halyk Bank, the country's largest financial institution, is acquiring a 49 percent stake in Uzbekistan's fintech company Click, one of the region's leading digital payment providers.
In return, Click's shareholders are also acquiring a 49% stake in Halyk's Uzbek subsidiary, Tenge Bank. The valuations: $176.4 million for the Click stake, $60.76 million for the Tenge stake. The total volume of the transaction thus amounts to approximately $237 million – a record for Uzbekistan's private technology sector.
With over 20 million active users, Click is a key driver of digital transformation in Uzbekistan. The company's proprietary super app combines payment services, government services, and online shopping in a single platform. In fiscal year 2024, the company increased its revenue by 35.3 percent and its profit by 37.5 percent. The valuation currently stands at around $360 million.
The cooperation between Halyk and Click is geared toward a long-term strategic partnership. Both companies will remain legally independent, but intend to integrate their technologies, infrastructure, and market presence. Together, they have a customer base of over 32 million people in a region with a total population of 58 million and approximately 2.6 million small and medium-sized enterprises.
The significance of this deal extends beyond the financial sector. It is part of a larger economic policy shift in Central Asia that has gained momentum since President Shavkat Mirziyoyev took office in 2016. Countries such as Uzbekistan and Kazakhstan are increasingly focusing on market liberalization, digitalization, and economic diversification with the aim of reducing their structural dependence on Russia and China. The war in Ukraine has further accelerated this strategic realignment.
The connection between Halyk and Click is not the first of its kind, but it is the most significant to date. It follows earlier failed merger attempts – such as between Click and the Russian provider Uzum in 2023 – and takes advantage of the resulting scope for new alliances. Since the founding of Tenge Bank in 2018, Halyk has pursued a clear expansion strategy in Uzbekistan, which is now transitioning into an institutionalized partnership.
The deal also strengthens the economic axis between Astana and Tashkent, which has already been reinforced by joint large-scale projects such as the Trans-Afghan Railway, bilateral energy agreements, and multilateral formats such as the US C5+1 initiative. The influence of economic policy elites should not be underestimated either – for example, the Kulibayev family, which is close to Halyk and whose political networks extend to the highest circles in the region.
This merger is more than just a corporate deal – it is an indicator of the digital and economic transformation of Central Asia. Especially in Uzbekistan, where up to 40% of the population has no access to traditional banking services, Click offers enormous potential for financial inclusion. Cross-border payments could become much easier in the future – not only between companies, but also for consumers.
Technologically, Halyk also brings experience in areas such as mobile banking, blockchain solutions, and digital identity management, which could also benefit Uzbekistan's authorities and economy. Nevertheless, the challenges are considerable: Uzbekistan's regulatory environment is restrictive, state control over financial flows remains high, and digital infrastructures outside the major cities are still underdeveloped. Cyber risks and a lack of transparency could also stand in the way of implementation.
Nevertheless, observers and market analysts are already talking about a "landmark fintech investment" – a signal that is attracting attention beyond the region. The deal could serve as a model for similar projects in e-commerce, digital government services, or payment transactions.
However, long-term success depends largely on whether economic expansion can be combined with local integration and fair competition. Governments are called upon to create clear rules. Companies such as Halyk bear responsibility – not only for profitability, but also for sustainability and trust.
Whether this fintech partnership will become a milestone in digital transformation – or merely another piece in the geopolitical mosaic of Central Asia – remains to be seen.
Original column (German):
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