Venture capital funds AloqaVentures and Sturgeon Capital have officially announced the sale of their shares in the startup Billz to TBC Digital Group — marking the first successful exit for both funds. Below, we explore what an “exit” entails and why this development holds particular significance.

 

What is an exit, and why does it matter?

 

An exit refers to the moment a venture investor sells their stake in a startup, thereby realizing a profit (or loss). It is a fundamental component of the venture capital model. Investors typically enter at an early stage, support the startup through its growth, and eventually exit — commonly through:

• Sale of shares to a strategic investor (as in the case of TBC Digital);

• Buyout by other investors;

• An initial public offering (IPO).

 

When do exits occur?

 

Exits usually take place during the scaling stage — once the startup has validated its business model, is growing steadily, and has become attractive to new stakeholders. A successful exit generally occurs within 3–7 years after the initial investment.

 

Why is this important?

 

For investors, an exit provides an opportunity to realize returns and reinvest capital.

For startups, it marks the next stage of growth with a strategic partner.

For the ecosystem, it validates the viability of startups and venture capital in the country, attracts investors, enhances market confidence, and catalyzes new ventures.

 

Details of the transaction

 

AloqaVentures has announced a partial sale of its stake in Billz to TBC Digital Group, marking its first successful exit. The deal involves the acquisition of a 53% stake for $9 million, with an option to increase the holding to 60% over the next two years, valuing the company at up to $12 million. The total valuation of the transaction reached $20 million, making it a symbolic milestone — the first full-fledged, high-return exit in Uzbekistan. 

 

Billz is a cloud-based retail automation platform offering solutions for point-of-sale (POS) management, inventory, customer relationships management (CRM), analytics, and e-commerce. Currently, the platform serves over 2,000 stores across six countries, including Uzbekistan, Kazakhstan, and Tajikistan.

 

AloqaVentures, which initially invested $250,000 in Billz, has now partially exited, securing its first profit since the fund’s inception.

 

Likewise, Sturgeon Capital has exited its position, having invested $150,000 in 2020 when the company was valued at just $800,000. Over four years, the fund achieved a return multiple of 3.95x, equivalent to an annualized return of 35% — one of the most successful exit cases in the region to date.

 

TBC Digital, the holding company managing TBC Bank Uzbekistan and the Payme payment system, plans to integrate Billz’s solutions to introduce a B2B credit model. This approach will enable credit assessments based on operational data, thereby enabling working capital loans for businesses — a move that may significantly reshape the digital lending landscape in Uzbekistan.

 

According to Sukhrob Gaibulloev, Managing Partner at AloqaVentures, the successful exit from Billz reinforces the fund’s strategy of supporting and scaling technology startups in Uzbekistan. The fund remains committed to investing in innovative projects that drive digital transformation in the region.

 

This exit event sends a strong signal to Uzbekistan’s venture ecosystem: successful exits demonstrate market maturity. It paves the way for new investments and strengthens confidence in regional startups.