For anyone who has ever tried to book a venue for an event or a photo shoot the old-fashioned way, the frustrations of the process are all too familiar. Endless phone calls, searching through classifieds, visiting locations, arranging meetings, and making deposits —these tasks can consume hours, if not days, even in our digital age. But the launch of Squares.kz has revolutionized this experience. Now, with just one platform, users can access thousands of commercial spaces for any event, and the entire booking process takes just 20-30 minutes. In an interview with Er10.media, founders Kasym Kabylgali and Daniil Matskevich share the journey of their startup, explain why they're not aiming to become a unicorn, and discuss the new features of their platform.
Follow Kazakhstan’s Startup Movement in the "100 Startup Stories of Kazakhstan", a collaborative project by ER10 Media and Astana Hub. This initiative highlights the most innovative Kazakh startups, showcasing projects that stand out for their creativity and impact. Among the heroes are Astana Hub residents, as well as creators of other innovative technological products and services. The content is available in Kazakh, Russian and English.
A Streamlined Platform
– As a potential customer, why should I choose your platform over traditional methods like searching online or asking around?
– (Kasym) The key is simplicity. Our platform offers a filtering system that allows you to tailor your search by event type, desired venue style, and guest capacity. The system then provides a curated list of the best matches. On each venue’s page, you can find comprehensive details, view photos, and assess the amenities and equipment available. You can also book the venue and pay a deposit or the full amount. Our partners receive instant confirmation of the booking and payment. From there, you can select additional services like catering or photography. In our experience, this entire process takes no more than 5-10 minutes.
– What challenges did you face during development, and how did you overcome them?
– (Daniil) It’s a classic development story. We initially planned to complete the project in 7-8 months, but it ended up taking almost twice as long. Development has always been our biggest challenge. Those without startup experience often underestimate the complexity of the process. It might seem like a small team can handle it, but we encountered numerous hurdles over the course of four years. However, we've gained substantial experience, built a strong team, and learned invaluable lessons that should prevent us from making the same mistakes again.
From Market Pain to Startup
– What motivated you to become entrepreneurs and launch a startup? Was it experience, research, or a clear market need?
– (Kasym) The idea was born in Italy. I was studying business, and Daniil was studying marketing. In our fourth year, we started working—Daniil joined a local ad agency, while I was invited to work at the startup DayBreakHotels.com. Then the pandemic hit, and lockdowns began. By August 2020, with our employers’ consent, I returned to Kazakhstan to work remotely. Daniil also returned to Almaty and began working as a creative director at a major marketing agency.
– (Daniil) In December 2020, I told Kasym about the difficulties we faced finding locations for events and shoots. Our whole department would spend an entire day searching online, making calls, visiting sites, and negotiating. After some brainstorming, we wondered why no one had created a platform for finding and renting locations in Kazakhstan. Initially, we planned to serve photographers, videographers, photo studios, and production companies.
– (Kasym) In January 2021, we started developing the platform and creating the MVP. Daniil managed the technical side, while I focused on securing partnerships with studios. In a short time, I was able to connect about 120 locations in Almaty. We launched the startup in May 2021.
– When did you realize you needed to expand your services and target a broader clientele?
– (Kasym) Those ideas started to emerge during development. We recognized that this was a vast, untapped market. Companies and individuals need venues for conferences, meetings, events, and more. Right after the platform launched, we began actively adding business locations. Within three months, we gained good traction, but we started running out of funds.
– Did you miscalculate your expenses? How did you address this?
– (Kasym) Most of our savings were tied up in cryptocurrency, which had taken a significant hit. We realized it was time to secure funding. Despite having no experience in raising capital, we managed to close a $100,000 round from the Shanyrak VC angel investor club within three weeks.
– (Daniil) By that time, we had already established a presence in Almaty. It was time to expand to other cities. We used the funds to scale the Squares.kz platform across Kazakhstan, quickly connecting 17 cities. However, most of the creative energy remained in Almaty. There was less activity in Astana, and our services saw limited demand in regional cities.
Turning Challenges into Success
– Were you discouraged by this setback?
– (Kasym) Not at all! The key takeaway was that we successfully tested the remote onboarding of locations and gained invaluable experience. With this in hand, we decided to enter the UAE market. Confident in our success, we conducted some market research and onboarded around 200 venues in Abu Dhabi and Dubai. However, within a few months, it became clear that the UAE had limited potential. Although the average transaction value was slightly lower than in Almaty, marketing costs were ten times higher. After spending just $5,000, we realized it wasn’t worth pursuing and quickly exited the market.
– (Daniil) Around the same time, we identified some issues with our product. We realized that many of the tasks performed by clients and ourselves could be automated. So, we set out to enhance the platform. To do this, we launched a second investment round and raised $120,000, which we dedicated solely to developing a new product. Essentially, we built an entirely new platform from the ground up. Not only did we automate numerous processes, but we also added new features and functionalities. We now have a comprehensive ecosystem for organizing conferences, shoots, and events that benefit both clients and property owners.
– What are the main differences between the old and new versions of the platform?
– (Kasym) As we mentioned earlier, automation is now the backbone of our platform, streamlining everything from search and booking to adding new listings. We've also expanded our ecosystem to include a variety of event service providers—event agencies, caterers, photographers, and more. This integration means that when you book a venue through us, you can seamlessly arrange all the additional services you need, directly on the platform.
Moreover, we’ve launched a new product—Squares Pass. This subscription service allows you to work from a variety of locations across the city, including coworking spaces, cafes, libraries, and other venues.
– Have you introduced a new monetization model?
– (Kasym) Yes, our primary revenue model is still commission-based, but we’ve also introduced a subscription-based model, similar to what 1Fit offers.
– Is the new version of your platform live?
– (Kasym) Yes, it is. Anyone can visit our website to explore the new platform and download our apps from the App Store and Play Market.
Unreliable Partners and Dissatisfied Customers
– How do you handle dissatisfied customers?
– (Kasym) Occasionally, a customer may choose a venue online, but upon arrival, they find it doesn’t meet their expectations. In such cases, they can cancel their booking and receive a refund. Each venue has its own cancellation policy, which is clearly outlined on our website. If a customer is unhappy after an event, we often step in as mediators to help resolve the issue. Typically, most situations are resolved amicably, as venue owners are keen to avoid negative reviews.
– What happens if a customer leaves a negative review?
– (Kasym) With the first negative review, a venue’s ranking drops in the search results. A second review pushes it even lower, and after a third, the venue is removed from the platform. So far, we’ve only had two venues that followed this path.
– Do you bear any responsibility for your partners?
– (Kasym) Technically, no. We are a platform that connects venues with customers. However, we are deeply committed to maintaining a strong reputation. If our customers are dissatisfied, they will stop using the platform, so we work hard to ensure that our partners’ venues meet customer expectations.
– Did your negative experience in the UAE market affect your expansion plans?
– (Kasym) Yes, it did. We realized that before entering new international markets, we need to conduct thorough research and secure strong strategic partners. We’ve also decided that, at this stage, we want to focus on becoming a strong local brand in familiar markets across Central Asia and the Caucasus, including Kazakhstan, Uzbekistan, Kyrgyzstan, Georgia, Armenia, and Azerbaijan. If we can capture these markets, that will be sufficient for us. We’re not ready to enter unfamiliar markets with strong competitors, as the risks are too high.
– Does this mean you don’t want to become a unicorn?
– For now, we’re comfortable where we are and aren’t looking to expand into larger global markets.
– What were your impressions of participating in the Google for Startups Accelerator?
– We participated in the third batch of the Silkway Accelerator program, organized by Astana Hub in collaboration with Google for Startups in 2023. Those 12 weeks were incredibly intense, but under the guidance of our mentors, we worked tirelessly to achieve our goals. The workshops hosted by Astana Hub, where guest mentors shared their expertise on topics ranging from marketing to finance, were particularly memorable and invaluable to our growth.
Unfortunately, we couldn’t attend the demo day because we were in Georgia for the 500 Global program. However, the overall experience with the Silkway Accelerator was extremely positive. Participation in such programs is incredibly beneficial for startups.
– Let’s talk statistics! Can you share your startup’s achievements?
– (Daniil) Today, our platform hosts over 2,000 venues across Kazakhstan and Georgia. In Kazakhstan alone, we’ve connected over 1,000 locations, with an additional 250+ in Tbilisi and Batumi. Our users have made over 15,000 bookings, involving more than 100,000 participants.
– What is the total amount of investment you’ve raised?
– (Kasym) We’ve completed three funding rounds—two in Kazakhstan and one in Georgia—raising a total of $320,000.
– Was that amount sufficient for your needs?
– (Kasym) Yes, our startup has already reached a cash-positive status. We’ve been generating revenue for the past year and a half, which has provided us with the resources for growth and made us more attractive to investors. This financial stability has allowed us to focus on developing our new product. With our core business generating profit, we’ve been able to concentrate on further strategic development.
– Do you have competitors, both in Kazakhstan and globally?
– (Kasym) In Kazakhstan, our indirect competitors are mostly classified ad platforms like Olx or Kriша. Our partners might list their venues and services there, but that’s an outdated model. Customers have to call, negotiate, send photos via WhatsApp, meet in person, and arrange deposits. Globally, there are similar startups, like Peerspace in the US, Canada, and the UK, which is doing well in those markets but isn’t looking to scale further. We also face competition in the UAE and Saudi Arabia.
Living with a Mission
– What is your startup’s mission?
– (Kasym) Our mission is to help our clients connect, create, and collaborate every day, inspiring them to reach new heights and bring their boldest ideas to life.
– What do you envision for your startup’s future in five years?
– (Kasym) We see Squares becoming the leading player in our industry across Central Asia, the Caucasus, and Turkey. Our ambitious goal is to continue being cash-positive and achieve an annual revenue of $10 million. We’re steadily moving towards this goal. But for us, it’s not just about the numbers. We aim to fulfill our mission by becoming a catalyst for the growth of individual entrepreneurship and small and medium-sized businesses. With 10,000 locations across the region, our platform will foster creativity and collaboration, bringing people together and creating new opportunities for everyone involved. We believe that by helping entrepreneurs find new markets, simplifying access to resources, and supporting their development, we can make a significant contribution to the region’s economic growth.
We envision a future where every city in Central Asia, the Caucasus, and Turkey has a vibrant and active business community, supported by Squares. Our success will be measured not just by financial metrics, but by how effectively we stimulate the region’s economy, create new jobs, support innovation, and promote entrepreneurship.
We hope that Squares will become more than just a platform—it will be an essential social and economic institution that helps people unlock their potential and achieve their dreams.
– What sport do you associate with your business approach?
– Tennis perfectly mirrors how I view business. In tennis, you’re constantly receiving shots from your opponent, and it’s crucial to respond skillfully—both physically and strategically. Business challenges are like those shots; you need to be ready to return them, but also anticipate where the next one will come from. Success in business, like in tennis, requires the ability to quickly formulate a strategy to return the shot, win the point, the set, and ultimately, the match.
