Research professor at the Kyiv School of Economics Killian McCarthy believes that after the acquisition of Uklon by Kyivstar, large Ukrainian tech companies will also seek to expand their services with new data and infrastructure.
Research professor at the Kyiv School of Economics Killian McCarthy believes that after the acquisition of Uklon by Kyivstar, large Ukrainian tech companies will also seek to expand their services with new data and infrastructure.
McCarthy told this in a comment to the DOU publication. In his opinion, this agreement could become «a turning point in the development of the Ukrainian technology market».
Earlier, the national electronic communications operator Kyivstar and the IT product company Uklon, which is a developer of an online platform and car ordering application, successfully completed the closing of the deal to purchase 97% of Uklon’s corporate rights. The deal amounted to $155.2 million.
According to Killian McCarthy, this shows the maturity of the Ukrainian ecosystem, but is also a consequence of wartime restrictions that are encouraging big players to invest domestically. He believes that the deal could be a signal to the market and trigger a wave of similar acquisitions — as large companies in the digital services, fintech, and logistics sectors «will seek to expand their services and gain access to talent, data, and infrastructure». This could lead to the emergence of vertically integrated platforms, as in South Korea or China, where telecom, payments, transport, and content are combined under a single brand.
«For IT professionals, the consequences will be mixed. On the one hand, acquisitions by large, established companies like Kyivstar could provide more employment, access to infrastructure, tools, and capital, as well as clearer career paths. On the other hand, such a trend could reduce the space for entrepreneurship, limit the autonomy of startups, and lead to a more corporate and less flexible environment — especially if companies are acquired rather than remaining independent,» McCarthy noted.
He added that if Kyivstar and other companies maintain «the flexibility of culture and the DNA of innovation» in the acquired startups, it will strengthen the ecosystem. Conversely, a rigid hierarchical structure can destroy the creativity that large companies seek to harness.
Earlier, Kyivstar President Oleksandr Komarov noted that his company, as a more mature business, will try to use Uklon’s young energy.
«We are not changing any top managers. Each interview is another sip of fresh water. I am sure that companies like Uklon, like Helsi will change us (Kyivstar)», — he said at the celebration of Uklon’s 15th anniversary.
McCarthy says that currently there are two main groups of potential buyers in Ukraine — domestic companies with limited capital and foreign investors with a long-term strategic vision.
«Among Ukrainian players, several large companies have excess funds, but face significant restrictions on capital withdrawal. These companies are effectively 'locked' within the country, and M&A allows them to reallocate funds in accordance with long-term strategies», — explained Professor KSE.
He believes that companies such as Kyivstar, PrivatBank, Rozetka, and monobank are in good positions. Some of them may consolidate within their industries, while others will seek new directions, especially related to digital infrastructure, logistics, or payments.
