Through programs like the EBRD Star Ventures initiative, local startups are tackling gaps in digital infrastructure that extend far beyond Azerbaijan's borders - creating solutions that could reshape how companies manage operations across emerging markets.

The timing reflects broader momentum. Baku's ecosystem value increased over 40% between 2022 and 2024, with over 100 startups with minimum viable products already operating. The country has set ambitious targets: reaching 500 investable startups by 2026, with 100 receiving significant investments.

The current EBRD cohort in Azerbaijan reflects this practical focus. Hirpo creates AI-powered employee performance management tools specifically for small and medium enterprises. Rather than competing with expensive enterprise software, they've built affordable, ready-to-use systems that help growing companies manage career development without requiring dedicated HR departments.

Prodigitrack has developed an AI-assisted digital procurement platform that streamlines purchasing operations for businesses of all sizes. By leveraging cutting-edge technology and expertise in supply chain management, the platform aims to reduce costs and enhance efficiency through automated procurement processes. As one of the most advanced startups in the current cohort, Prodigitrack addresses the complex challenge of optimizing procurement operations that many growing companies struggle with as they scale.

Spryynto has developed a comprehensive payment platform handling everything from PSP acquisition to card issuing and e-wallet services. Their focus on secure, seamless transactions addresses payment infrastructure gaps that many regional businesses face.

Bonpara takes a different angle, building an e-commerce platform for content creators. Their integrated approach combines digital content monetization, payment gateways, and marketing tools into a single platform. Miloy App addresses corporate benefits management, creating digital solutions for managing corporate discount programs and employee benefits.

What connects these companies is their focus on business fundamentals - developing infrastructure tools that companies actually need as they grow and digitize operations, rather than building cutting-edge consumer applications.

This practical approach reflects broader government strategy. The Innovation and Digital Development Agency has supported over 190 teams through incubation programs in 2023, while angel investment networks organize regular matchmaking sessions and the Central Bank has established a regulatory sandbox for blockchain startups.

Unlike many emerging ecosystems that chase consumer trends, Azerbaijan's startups are systematically building the business infrastructure that the region's economy needs to digitize.

The broader infrastructure is building rapidly. International companies like Microsoft, Samsung, and Xiaomi have expanded their businesses in Azerbaijan, creating a foundation for local startups to scale globally.

Azerbaijan's approach suggests entrepreneurs are building sustainable, revenue-generating businesses that address operational challenges companies face across the region. These solutions - from employee management to procurement optimization - represent the kind of digital infrastructure that emerging markets worldwide need as they digitize their economies.

The foundation for this growth is clearly taking shape, positioning Azerbaijan's startups to serve not just local markets but businesses across Central Asia, the Middle East, and beyond.

This article is part of "Beyond the Valley", an editorial series exploring how founders in emerging Europe and Central Asia are building crucial technology their regions need. From modernizing Soviet-era infrastructure to creating digital services from scratch, we'll show you how local entrepreneurs are solving fundamental challenges. Published monthly by Seedstars, supported by EBRD Star Ventures.