This Year, We Plan the First Exits: White Hill Capital’s Founder on Investments, Saudi Arabia, and Promising Startups

Digital Business continues to explore the potential of global markets for scaling Kazakhstan’s startups. As part of Kazakhstan Global, we have already examined Southeast Asia. Now, it’s time to dive into another equally exciting market — Saudi Arabia.

We are launching our series with an in-depth interview featuring Aslan Sultanov, founder and managing partner of White Hill Capital, which oversees the Tumar Venture Fund. In the first part, published today, he shares how the fund selects startups and helps them enter the Saudi Arabian market. We also discuss Kazakhstan-based projects with the potential for major success in the Middle East, as well as the future exits of Tumar Venture Fund.

About Tumar Venture Fund

The early-stage venture capital fund, Tumar Venture Fund, was established as part of the Stimulating Productive Innovation Project, led by Kazakhstan’s Ministry of Digital Development, Innovations, and Aerospace Industry, with funding from the World Bank. The fund invests in both Kazakhstani and international startups across FinTech, eCommerce, EdTech, HealthTech, AgriTech, LogiTech, and other high-potential industries.

Local Champions, Market Nuances, and Over $10M in Investments

«Building Trust Is Key in Saudi Arabia»

– When Tumar Venture Fund was announced in January 2023, it was stated that the fund would focus on supporting Kazakhstani IT solutions with the potential to scale in Saudi Arabia and the broader MENA region. Since then, how many startups have you financed, and what are those projects?

– Our portfolio currently includes around 14 startups. From the start, we have focused on identifying local champions — projects that have found their product-market fit, refined their sales strategy in the local market, achieved positive cash flow, and developed a scalable business model. In other words, our ideal candidates are seed and pre-Series A startups with a working product.

Furthermore, through the Al-Farabi Innovation Hub, launched in Riyadh last March, we help startups enter the Saudi Arabian market. We run acceleration programs like Al-Farabi ScaleUp, support promotions, facilitate networking, assist with launching initial pilot projects with local companies, and manage other organizational aspects

In this country, building trust is essential. We have already established a locally registered company, Al-Farabi Innovation Hub, which is licensed to run accelerators under the Ministry of Investment of Saudi Arabia. Additionally, we have support from the local Ministry of Communications and Information Technology (equivalent to Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry), Monshaat (the agency supporting SMEs), and other organizations. All of this strengthens trust in the fund, the accelerator team, and the startups we promote in the region.

This significantly speeds up the transaction cycle with both government authorities and businesses. The same principle applies to investors who may finance the next round.

– Do you primarily focus on Kazakhstani startups, or do you also collaborate with projects from other Central Asian countries?

– We primarily focus on projects where Kazakhstani founders are among the key stakeholders. We also support startups that operate in Kazakhstan and are residents of Astana Hub, allocating around 70% of our fund to them. The remaining 30% is reserved for foreign projects planning to enter the Kazakhstani market. Currently, we have several such companies, including Azerbaijan’s Push 30 and Tajikistan’s ZYPL.AI. However, all of them already have a presence in Kazakhstan. So overall, approximately 90% of our portfolio consists of Kazakhstani startups.

In other words, we seek out startups that have proven themselves in Kazakhstan, offering them investment and support to expand into the MENA region through Saudi Arabia. This is where the Al-Farabi Innovation Hub comes in — it understands the country’s unique market dynamics and helps founders establish key connections while conducting thorough market analysis.

«Over the Past Two Years, We’ve Invested More Than $10M in Startups»

– Given that you invest in established and relatively stable projects, what is the average investment per round?

– Currently, it’s around $300,000. However, I want to make an important note. When we first started and needed to deploy the fund while demonstrating results, we invested larger amounts. For example, our investment in CodiPlay exceeded $1M, while in ZYPL.AI, it was around $700,000.

Our strategy has evolved. When we identify a startup we’re ready to invest in, we take a structured approach. We commit between $300,000 and $500,000 but initially close the round with $100,000–$150,000. The remaining amount is provided as a follow-on investment once the startup meets our established KPIs. This approach allows us to see the project in action, build a strong working relationship with the founder, and gain a clearer understanding of its potential. In fact, almost all of last year was dedicated to follow-on investments, helping startups accelerate capitalization and attract additional funding.

– How much of the target fund has already been allocated to projects?

– Tumar Venture Fund initially raised around $20M from state and private investors. If I’m not mistaken, we have already invested approximately $10M.

However, this year, we plan to secure additional funding. In the coming months, we will announce the addition of new investors. Various development institutions, international organizations, and private entities are ready to join us. I believe we will close at around $30–35M.

Then, we will invest and generate returns. This year, we plan to make our first exits. In a way, we are also like a startup, with expectations for concrete results. One of our key KPIs is achieving two successful exits.

Fund Expansion, Exits, and the Prospects of Kazakhstani Startups in the Middle East

«We Expect Returns of 5 to 7X from Each Startup»

– Which portfolio companies have the greatest chances of making an exit?

– I believe CodiPlay and ZYPL.AI have the highest chances. Both projects are currently at the stage of attracting new funding rounds. CodiPlay’s founder, Zhanadil Taldybayev, has already announced that they secured $9M at a $100M valuation as part of their Series A. Now, we are waiting for their investors to be ready to buy out our share. Earlier, Tumar Venture Fund’s value was clear — we helped secure their first clients in Saudi Arabia and connected them with investors. However, at this stage of the startup’s development, third-party investors often see us as external stakeholders. For them, buying out our share is a more straightforward option than waiting for future multiplier growth.

ZYPL.AI recently raised $3M at a $35M valuation in its pre-A round. As far as I know, ZYPL.AI’s founder, Azizjon Azimi, is actively preparing to secure Series A funding, which presents a great opportunity for our exit.

– What returns are you expecting from these transactions?

– This is always a matter of negotiation. However, in general, the market typically applies a 20–30% discount from the most recent closed round. For example, if CodiPlay’s final round reaches approximately $10M, we can expect a return of 5 to 7X on our investment. That said, it ultimately comes down to negotiation and demand—the more eager we are to exit, the lower our potential return may be.

– Both CodiPlay and ZYPL.AI are highly promising projects, showing strong growth year after year. Isn’t it too early to exit these startups at this stage?

– From the very beginning, Tumar Venture Fund has positioned itself as a fund that invests in startups, helps them maximize growth over 18–24 months to reach Series A, and generates multiple returns. Given the size of our fund, we are not structured to participate in later-stage rounds. Therefore, exiting at this stage is a completely logical strategy.

«In Saudi Arabia, It’s Never Just About the Price»

– Which other startups in Tumar Venture Fund’s portfolio have the potential to take off?

– JobEscape — a platform that simplifies the process of learning skills for a freelance career using AI (a note from the Digital Business editorial team) — has great potential. First and foremost, it has a strong founder, Miras Sovetov, who already has experience with successful exits. Secondly, it boasts a talented team of professionals capable of driving significant growth. I believe that, together with Miras, we will find the right strategy to accelerate JobEscape’s expansion in Saudi Arabia.

Aslan Sultanov with Miras Sovetov, founder of JobEscape. Photo: Ministry of Digital Development of Kazakhstan

Another great example is Garderob — a marketplace for buying and selling second-hand branded clothing (a note from the Digital Business editorial team) — led by Dias Nurlanov. While his focus is currently on Europe, which isn’t quite our market, we are still prepared to support him in accelerating future funding rounds.

Aidana Aituarova’s startup, Porte Tech — a SaaS solution that replaces magnetic room keys with digital access (a note from the Digital Business editorial team) — is also highly promising. I believe in this project because it has an interesting business model. Rather than competing with existing hotel solutions, Porte Tech integrates into them. This is a key advantage, as in Saudi Arabia, it’s never just about price. Saudis prioritize high-quality service and opportunities for additional revenue, and Aidana’s solution aligns perfectly with these values. Moreover, the MENA market is massive—there are over 2,000 hotels in Saudi Arabia and the UAE alone. This presents a broad client base with a well-defined average transaction value.

We are currently in discussions with Aidana regarding potential investments, and I believe there is a strong chance that we will fund Porte Tech. We plan to start with an initial investment of $100,000–150,000, set semi-annual and annual KPIs, and provide follow-on funding upon their successful achievement.

– In general, what are your plans for the upcoming year?

– We aim to close 5–6 new deals and continue with follow-on investments, as some of our startups are close to meeting their established KPIs. Additionally, we hope to increase the fund’s volume to $30–35M.