Cyprus has emerged as a strategic hub for the fast-growing software firm Altegio, according to managing partner Yri Petrou. In an interview with the Cyprus Mail, Petrou outlined the company’s impressive international growth, its software-as-a-service (SaaS) platform, and the pivotal role Cyprus plays in its global operations.
Photo: cyprus-mail.com
- As Altegio continues to evolve, its presence in Cyprus and beyond will likely play a crucial role in the company's future growth and the broader digital transformation of service-based businesses.
Altegio’s Swift Growth Since 2022
Founded in 2022, Altegio has quickly established itself in the market, serving over 12,000 clients across more than 90 countries. The company processes around $1 billion in annual gross merchandise value with a workforce of over 130 professionals spread across seven offices worldwide, including a key location in Limassol, Cyprus.
Photo: cyprus-mail.com
Strategic Decisions Shaping Identity
Petrou highlighted the strategic decisions that have shaped Altegio’s identity as a platform distinct from its origins in Eastern Europe. Previously, the company operated under the YCLIENTS brand, which focused primarily on Russian markets. Following geopolitical events such as the war in Ukraine, Altegio transitioned away from its Russian roots, ring-fencing the Russian part of the business and moving clients to the new brand.
Challenges and Ethical Decisions
One of the most difficult decisions made during this transition involved transferring the Ukrainian business to local partners. Petrou explained, “The hardest decision was transferring our Ukrainian business to our local partners, giving them full control free of charge. We faced a stark choice: either leave Ukrainian clients without a mission-critical product during a time of crisis, or transfer the business to our partners in Ukraine.” He expressed no regrets about this decision, as it ultimately provided much-needed support to Ukrainian clients.
Why Cyprus is Key to Expansion
Petrou elaborated on why Cyprus has become a crucial hub for Altegio. Following the Belarus protests in 2020 and the war in Ukraine, many entrepreneurs from Eastern Europe have relocated to Cyprus. Currently, Altegio has 84 active clients in Limassol, more than in any other city of similar size.
Advantages of Operating from Cyprus
The advantages of Cyprus as a financial hub include a favourable tax regime, accessible residency programmes for founders, and a supportive ecosystem of professional advisers. Being based in Cyprus also allows Altegio to comply with EU regulatory standards, streamline payments to remote employees, and facilitate residency permits for staff without major obstacles.
Digital Maturity in Local Markets
When discussing the digital habits of businesses in Cyprus, Petrou noted that local companies in sectors such as beauty, wellness, sports, and healthcare exhibit a higher level of digital maturity compared to those in other markets like Hungary or Serbia. He stated, “In Cyprus, Altegio is utilised by major brands in the very heart of Limassol. This is a clear indicator of quality: digital maturity is higher here than in Israel or the UAE, for example.” This contrasts with more conservative markets, where business owners often rely on non-specialised solutions, such as Excel, which hinders their growth.
Global Expansion Plans and Market Selection
As Altegio continues to expand, it recently became a resident of Astana Hub, Kazakhstan’s international start-up cluster, while maintaining growth in markets like Brazil and the UAE. Petrou explained their approach to market selection: “When entering foreign markets, we focus primarily on the size of a country’s service sector and the level of competition from other software providers.” This strategy allows Altegio to identify countries with the greatest potential for its platform.
Understanding Market Dynamics
Petrou shared insights into specific markets, noting that Hungary presents challenges with its prevalence of small, private studios, while Brazil offers a dynamic environment with thousands of new service businesses launching monthly. However, he acknowledged the high closure rates in Brazil, highlighting the competitive landscape.
The Future of Service-Based Business Models
Looking ahead, Petrou believes platforms like Altegio, which can automate up to 80 per cent of a company’s operations, will significantly shape the future of service-based business models. He noted that digitalisation enhances operational control, improves staff efficiency, and supports revenue growth. “For instance, our platform can reduce customer no-shows by up to 60 per cent and increase client acquisition by around 30 per cent through improved lead conversion and online booking,” he explained.
Integration with Fintech and AI
Petrou also highlighted the growing interest from fintech companies in SME transactions, which has led to competitive terms for integrating payment services into Altegio’s platform. The integration of AI solutions is another area where Altegio is innovating, enabling automated customer communication that can enhance client engagement and streamline processes.
As Altegio continues to evolve, its presence in Cyprus and beyond will likely play a crucial role in the company’s future growth and the broader digital transformation of service-based businesses.
