Nasdaq-listed Freedom Holding Corp., a fintech company, does not plan to return to the Russian market in the near future. Freedom Holding’s founder and CEO, Timur Turlov, has repeatedly stated in interviews and livestreams that even a hypothetical return would effectively require rebuilding the business “from scratch.”
“We sold our Russian business – it’s an entire operating system. And if we ever return, we will start all over again. There will be no ‘buyback’ – it would be a new project,” Turlov said.
According to Timur Turlov, the deal to sell the Russian division, which closed in February 2023, does not include a buyback option. Therefore, the company has no legal means of automatically returning to that market. Even if the company were to make such a decision in the future, it would have to rebuild its infrastructure, client base, and operational processes from the ground up.
Sale of the Russian Business and Strategic Shift
In October 2022, Freedom Holding Corp. announced the sale of a 100% stake in the Russian investment company Freedom Finance and its namesake bank to Deputy CEO Maxim Povalishin for $140 million. After the transaction was completed, the entities were rebranded: the investment company became Cifra Broker, and the bank was renamed Cifra Bank.
This step was part of a large-scale business restructuring. In June 2022, Timur Turlov announced that he had obtained citizenship of Kazakhstan and renounced his Russian citizenship and his citizenship of Saint Kitts and Nevis. As a result, Freedom Holding’s strategic base shifted permanently to Kazakhstan and other foreign jurisdictions.
“Kazakhstan has become our home. Here we are growing our business, building our team, and this is where we see the greatest potential for scaling our financial and technological offering,” Turlov commented on choosing Kazakhstan as Freedom Holding’s base.
Growth Story: From Regional Broker to NASDAQ
Freedom Holding Corp. was founded in 2008 as an investment firm and successfully went public on NASDAQ in 2019 under the ticker FRHC. The listing marked a milestone – Freedom Holding Corp. was among the first financial institutions from the CIS region to be listed on a U.S. exchange.
Since its IPO, the company’s shares have increased severalfold, and its market capitalization has reached several billion dollars. According to Forbes’ global ranking, Timur Turlov’s net worth is estimated at several billion dollars, and he ranks among Kazakhstan’s wealthiest entrepreneurs.
“Our story is one of moving forward. When we went public on NASDAQ, we were told it was impossible. And now we are known on Wall Street as a company building a global-scale business,” Turlov said, reflecting on the company’s growth trajectory.
Digital Ecosystem in Kazakhstan
Kazakhstan has become a key market for Freedom Holding Corp. The company is actively developing a digital ecosystem that integrates banking, brokerage, insurance, and technology services. It also invests in construction of its own data centers, ensuring independent and scalable IT infrastructure. As part of its technological development, the company is building partnerships with leading global companies such as NVIDIA, Microsoft, Amazon, and other technology leaders.
“We are building the infrastructure of the future – a digital platform that can scale across many countries and economic systems,” Turlov stated.
To finance further growth, Freedom Holding Corp. is considering issuing bonds in the U.S. capital markets. This would help diversify funding sources and attract institutional investors.
“We are not afraid to view the market through the lens of global standards – that is how we create sustainable growth,” Timur Turlov noted.
SuperApp: A Driver of Customer Base Growth
One of the key elements of the ecosystem is the SuperApp, which combines banking, investment, and everyday services. By the end of last year, the app’s user base exceeded 4.5 million, making it the most downloaded banking application in Kazakhstan and placing Freedom Bank among the country’s top three banks by growth rate. By the end of the current year, Freedom Bank aims to increase the number of SuperApp users to 8 million.
“SuperApp is our philosophy of interacting with the user. We provide convenience and freedom in a single application,” Turlov described his vision of the fintech platform.
Expansion and International Presence
Alongside its development in Kazakhstan, Freedom Holding Corp. is expanding its international network. The bank already operates or plans to operate in the markets of Tajikistan, Georgia, and Turkey. In addition, the group’s business is represented in several European countries and in the United States through brokerage and investment structures.
This international expansion aligns with the company’s overall strategy. Freedom Holding Corp also remains focused on development in Kazakhstan, expansion of digital infrastructure, and international growth.
“We do not look back. Our focus is always on the future – where new opportunities are created for our clients and our employees,” Timur Turlov concludes.
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Cover Photo Credit: Timur Turlov – Freedom Holding Corp
