Kazakhstani startup ISTOK HOME is a hub for architects and interior designers.

The founder of the platform, Ayat Erejeppov, told 5q.media how to simplify and improve the renovation process.

Experience working abroad

Ayat chose interior design after six years of studying architecture at KazGASA and abroad. He noticed that renovation abroad always starts with design. “When creating a project, they plan their budget and time in advance. Our designers can also provide services for foreign clients. Thanks to digital platforms, it is possible to receive orders from abroad, and we want to become such an opportunity for young designers,” said Ayat.

Project Idea

During his work as a project manager for apartment renovations after returning to Kazakhstan, he encountered the fact that renovations dragged on for six months or more due to the lack of project planning. “Renovation turned into chaos. What upset me the most was when, in the end, clients did not get the desired result,” Ayat recounts. He saw an opportunity to create a service that would unite local designers. Thus, the idea to create ISTOK HOME was born.

Startup Goal

The platform helps clients meet with specialists who can create an interior based on wishes and budget. “Renovation often turns into stress for future residents of the house. Our task is to ensure they do not experience this stress. We strive to make the process as easy and engaging as possible. Developing a design project, resource planning, and quality service are our tools.”

Working Mechanism

The client fills out a questionnaire on the website, describing their wishes, budget, and deadlines. Then, specialists ready to start the project are selected for them. After that, the client chooses a designer based on price, portfolio, and experience. Once the design project is ready, the client is offered reliable suppliers of goods and services.

Earnings for Creators

The service is free for clients and designers. Here they create their profile, where they place their portfolio and use it to attract clients. This is much easier than creating a separate website or maintaining a social media page. They are also offered paid tools to promote their portfolio. In the future, a subscription for professionals is planned, which will give them additional opportunities and more orders. The company also wants to earn commissions on secure payments, but they are still under development.

Difference from turnkey apartment renovation projects (e.g., Smart Remont)

Istok Home helps people create individual designs that suit their lifestyle and needs. “We consider the Smart Remont service as a partner who can implement the ideas of our designers. There are other platforms for finding interior designers, but they are not as popular and well-known in our market,” Ayat stated.

Startup Funding and Launch

Ayat invested his own initial funds, created a website on WordPress, and placed the portfolios of his designer friends on it. With this project, the startup went through the Art2B creative entrepreneurship development program by ImpactHub and won a prize grant of 462,000 tenge from Chevron. These funds were directed toward design and initial development. The grant could not cover all expenses, but there was already a prototype that attracted clients and designers.

“I invested my own funds to develop a full-fledged service – about 4.5 million tenge, but the money ran out quickly, and monetization was not even discussed. Then we turned to investors, transferred them a share of the company, and received investments through the Shanyraq fund in the amount of $100,000,” says Ayat. The money went toward improving the platform, SSR and CDN technologies, updating the UI/UX website design, and marketing.

Startup Profit

“According to our calculations, we should reach the break-even point by the end of the year and plan to start making a profit from next year. But we expect that all received profit will be reinvested back to improve the product,” said Ayat. In particular, secure payment will be added to the website so that all processes are transparent. Currently, the client finds a designer on the website themselves and signs a contract with them outside the platform, but the creators want greater transparency and client protection.

Company Valuation

“Currently, we cannot give an exact valuation of the company. Startups are valued by how much they can earn in the future, and the renovation and interior design market grows by 15% annually. Only in Almaty, more than 26,000 apartments are being built and sold in 72 residential complexes, and this does not include the existing housing stock and commercial premises, so we have great potential,” Ayat states.

Client Preferences

“There are two types of customers – the older generation mainly loves neoclassicism, relief shapes, various moldings, and patterns, while younger customers prefer Scandinavian style and minimalism.

Mostly, we receive orders for private projects. For example, there was a project for a country house in an eco-style, where natural materials were mainly used – wood, stone, simple concise shapes. The interior turned out very bright and cozy. It is pleasant to relax from the hustle and bustle of a big city in such a house,” Ayat shared.

Company Results

Since the end of 2020, 74 “Express Design” projects and about 10 orders for other design project packages have been completed through ISTOK HOME. Currently, 39 interior designers are registered on the website, and more than 100 projects are posted. “We haven’t even engaged in active client and designer acquisition yet; we have only been improving the platform,” says the startup founder.

Plans for Further Development

The company plans to develop as a full-cycle platform from idea to implementation and is developing functionality for selecting contractors and suppliers, where one can find renovation crews, furniture manufacturers, building material suppliers, home goods, and furniture. “We named this direction ISTOK Friends, as these are verified companies with whom our designers have already completed several projects. The implementation of the project depends on a lot, so we approached this question very seriously. Additionally, we request discounts and gifts from partners for our clients,” said Ayat. The company also plans to develop new directions in designer services besides major renovations, such as interior decoration, selection of accessories and furniture, etc.

Project Scaling Potential

“With a successful pilot in Almaty, we plan to scale the service to other major cities in Kazakhstan, and in the future – enter the markets of Uzbekistan, Kyrgyzstan, and Russia, where interior designer services are also gaining popularity,” the startup founder stated.

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