Singapore, the United States, and South Korea: How Central Asian Startups Scale into Foreign Markets

About Us

Shamil Akhmedov. I build and scale two businesses in Singapore. I have extensive experience in Product Management and Executive Management, both in large corporations and startups. I also invest in startups as a business angel.

Madina Umurzakova. I am the Director of Development at the startup Cerebra. We develop software that helps diagnose strokes. Thanks to it, stroke specialists save many lives. We are present in the USA and Uzbekistan and are entering the Saudi Arabian market.

Aliyar Kadicenov. I work as a Sales Manager at CodiPlay. Our startup is a comprehensive solution that helps children learn programming. Currently, we are scaling in Dubai. CodiPlay has also established itself well in the markets of South Korea, Uzbekistan, Azerbaijan, and Kazakhstan.

How Scaling Helps Company Development

Shamil Akhmedov. Our project, Akhter Studios, is presented in Kazakhstan as a company providing product outsourcing and custom development. We reached our limits and built a strong brand. Therefore, we began looking for opportunities for further development. We searched for markets where there is a high concentration of capital and venture funds. We chose Singapore. We used the scaling process of Akhter Studios as a foundation and then decided to create a new startup, Introdex.

Madina Umurzakova. Cerebra covers 82% of the stroke center market. The Central Asian market is not yet ready to use AI-based software for commercial purposes at the legislative level. Therefore, we decided to try more "mature" markets. At the same time, we are advancing in four markets: Kazakhstan, Uzbekistan, Saudi Arabia, and the USA.

In 2022, the US Food and Drug Administration registered 521 devices based on machine learning. Doctors and legislation have established a relationship with artificial intelligence. We are still waiting for this in our country. Meanwhile, we continue to lay the groundwork in Kazakhstan so that other MedTech projects can develop. Together with government bodies and the Artificial Intelligence Association of the Republic of Kazakhstan, we are working on regulatory acts that will allow government institutions to officially use artificial intelligence.

Aliyar Kadicenov. We decided to scale to expand the boundaries of our business. This helped the company strengthen its market position and increase competitiveness. Entering other markets allowed CodiPlay to make more changes to the educational process.

Why We Chose These Markets

Shamil Akhmedov. Introdex is a product that helps businesses increase sales. We do not sell products; we aim for long-term cooperation. Therefore, we looked for a market saturated with industries oriented toward partnership. The second criterion was the amount of capital. The third was the lack of a significant time zone difference between the new market and Kazakhstan. The final factor was the presence of our clients in the country. Based on this, we chose Singapore.

Before scaling, we conducted research. Singapore has more than 700 venture funds, about 100 direct investment funds, and more than 20 family offices. This is impressive, considering the size of the territory.

Madina Umurzakova. The main competitors of Cerebra are from the USA. Their solutions were created based on Stanford University and other top research centers. Another reason is regulation. In America, it is understood that artificial intelligence will not replace doctors but will significantly help them in treating patients. The laws of this country give advantages and allow MedTech technologies with AI to make money.

There are 56 stroke centers in Kazakhstan. They could potentially be our commercial clients. We operate for free in 46 of them. This is because, at the legislative level, we are not allowed to receive government funding.

In America, there are more than 5,000 stroke centers that could become our partners. Doctors there are already accustomed to working with AI devices and are not afraid to use them in their work.

Aliyar Kadicenov. We conducted an analysis of the competitive landscape. One of the reasons for entering the South Korean market was to confirm the hypothesis that we need to create a product that can work in a high-tech country. The common problem in all CIS countries is the low level of computer literacy. This allows CodiPlay to grow as a product because we enable children to learn complex things in an interesting way.

Before entering another market, we study the relevance of the project for the residents of that country and the scale of the country.

Challenges in Scaling

Shamil Akhmedov. In Southeast Asia, everything heavily depends on networking. Business must be conducted through connections, when you have warm introductions from other acquaintances.

Also, the high standard of living makes it expensive. Therefore, maintaining a large team in Singapore is costly: office rental prices here are 36% higher than in London.

In Indonesia and Malaysia, it is necessary to constantly meet clients in person, talk, and communicate with them.

Madina Umurzakova. There were no legal challenges in scaling. But if you plan to scale, be sure to calculate all expenses. Conduct interviews, obtain commercial applications, to realistically understand how much money you will need.

Aliyar Kadicenov. We have legal challenges in scaling because when entering new markets, we connect schools to the project through government procurement. This obliges us to open a legal entity in each country we enter and appoint a director.

In each country where we operate, it is necessary to hire a staff of employees. Connecting schools is not a one-time process, and for the product to continue working and developing, it is necessary to have local employees.