27 Apr 2024
Monday 12 October 2015 - 11:42
Story Code : 184166

Iran's digital start-ups signal changing times

Western business people returning to Iran in the wake of the nuclear deal may be surprised to find plenty of entrepreneurial drive from a new generation of online start-ups, which have appeared despite years of international sanctions.
If Amazon chief Jeff Bezos were to go to Iran today, he would find a lot that looks very familiar.
Digikala is an Amazon-style Iranian company offering free, same-day delivery of digital gadgets.
Set up by brothers Hamid and Saeed Mohammadi, it's the country's sixth most visited website, with a staff of 900 and about 850,000 visitors every day.
"Eight years ago, digital cameras were all the rage," says Hamid. "My brother and I were looking to buy one, but we couldn't find a single Farsi review online."
They ended up buying a camera locally only to discover that the lens wasn't genuine.
"It got us thinking - what if there was a site where you could read all the reviews and reliably buy the product?"
That initial experience led to the creation of a company that combines an online retailing arm with a review site similar to CNet, the US technical review giant.
"We have our own studio and a 100-strong content team," says Hamid. "They test the products and shoot and edit reviews for our Digikala TV."
Huge appetite for technology
Digikala distribution centreImage copyrightDigikala
Image caption
Digikala is Iran's biggest internet company
In many ways Digikala has benefited from what Prof Nader Habibi, of Brandeis University, in the United States, calls the empty playground caused by sanctions
"Companies who rely on foreign trade and imports were harmed the most [by sanctions]," he told the BBC.
"But for domestic digital companies sanctions just kept out reputable brands like Amazon and Google. It actually gave them an opportunity to raise their market share."
In 2014, the World Startup Report, a US-based organisation that monitors new online businesses, valued Digikala at $150m (100m).
Today, the company says it is worth more than $500m.
Despite the damage that sanctions have done to the Iranian economy overall, Digikala has no shortage of customers willing to spend big money on items like top-of-the range smartphones.
For Hamid, this is no contradiction.
"Iran has one of the youngest, most highly educated populations in the region," he says. "For them, technology isn't a luxury. It's the fabric of their lives. They will get it, even if it is difficult to afford."
The biggest internet companies in Iran
1. Digikala, valued at $150m
2. Aparat Group, $30m
3. Cafe Bazaar, $20m

This article was written by Hossein Sharif forBBC News on Oct. 12, 2015.
https://theiranproject.com/vdcfvjdyvw6dcya.r7iw.html
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