Iran Startup Pulse: Major Updates from November 2 to November 9

This week, the Iranian startup ecosystem faces dynamic changes, from intensifying competition in food delivery to strategic exits in e-commerce and regulatory shifts affecting crypto and investment markets.

TAPSI Food vs. Snappfood: Mustafa Sayedhosseini, CEO of TAPSI, disclosed the challenges TAPSI Food encounters due to exclusivity agreements imposed by Snappfood. According to Sayedhosseini, many restaurant partners are effectively barred from working with TAPSI Food unless they pay substantial penalties and cover the costs of previously exclusive marketing arrangements with Snappfood. He further emphasized the need for competitive practices in Iran’s food delivery sector, highlighting the struggle new entrants face in securing partnerships. TAPSI’s legal team is moving forward with formal complaints, urging fairer competitive practices in this space.

Expansion Plans for TAPSI: TAPSI Food has already launched in Mashhad and Shiraz, with expansion to Tehran on the horizon. Beyond food delivery, TAPSI plans to integrate services such as online pharmacy, grocery shopping, and other convenience features within its super-app, addressing broader customer needs across various sectors.

Sarava Ventures’ Exit: This week saw a landmark moment in Iran’s digital economy as Sarava Ventures exited its holdings in key players like DigiKala and Hazar Dastan Holding, which operates Cafe Bazaar and Divar. This follows Sarava’s strategic sale of its DigiKala shares to MCI, marking one of the largest exits in Iran’s startup history. As Sarava phases out its investments, the future of its role in Iran’s startup ecosystem remains a topic of speculation.

Crypto Exchange Restrictions Persist: The Central Bank has once again imposed limitations on cryptocurrency exchanges, suspending rial withdrawals and deposits on several platforms. Bitpin CEO Amirhossein Mardani likened the new restrictions to a “curfew” in the crypto space. NobiTex also confirmed that user withdrawals are facing delays due to these policies. The ongoing regulatory interventions are creating challenges for users and operators alike, raising questions about the future of crypto trading in Iran.

Iranian MarTech Landscape: Tekrasa Insight’s report on Iran’s marketing technology (MarTech) sector reveals that the market grew by an impressive 109% year-over-year, reaching a valuation of 2,400 billion tomans. However, growth is tempered by issues such as capital shortages, sanctions, and economic downturns, with digital economy expansion being the sole driver of MarTech’s resilience. Despite challenges, the MarTech sector in Iran shows significant potential for aiding businesses in data analytics, customer experience, and revenue growth.

These developments signal ongoing competition, strategic shifts, and the impact of regulation on Iran’s rapidly evolving digital economy. As industry players navigate these shifts, the stage is set for both growth and transformation in the ecosystem.