Russian IT companies have nearly doubled their revenue over the past three years, reaching a collective turnover of more than $80 billion amid rising domestic demand, according to a study published on Tuesday by Smart Ranking.
The combined revenue of Russia’s 100 largest IT firms surged by 95% since 2022, reaching 6.7 trillion rubles ($83.1 billion), according to the company’s data.
The top ten companies — including tech giant Yandex, social media platform VK, and state-controlled telecoms operator Rostelecom — accounted for 70% of the total, or 4.6 trillion rubles ($57 billion).
Yandex’s revenue rose by 110% during the period, hitting 1.95 trillion rubles. Tinkoff Bank recorded a 163% jump to 962 billion rubles, and online retailer Wildberries saw its revenue increase by 108% to 657.5 billion rubles. ICS Holding, the smallest among the top ten, reported a 198% rise to 140 billion rubles.
The figures reflect revenue from digital products and services only, excluding sales from hardware, offline operations, or other unrelated areas, Smart Ranking said.
Analysts cited several drivers of growth, including the departure of foreign tech companies from Russia due to the Ukraine conflict, an uptick in mergers and acquisitions, and increased demand for integrated IT services. Eight of the ten leading firms provide ecosystems that cover areas such as digital payments, ride-sharing, and food delivery.
Dmitry Kalaev, head of the Internet Initiatives Development Fund Accelerator, noted that only 11 of the 100 companies are publicly listed. He described this as a sign of limited access to investment capital and pointed out that Russia has the potential for more public tech firms. Kalaev added that high interest rates are currently a barrier to IPOs.
He also noted that Russian tech firms face obstacles in expanding globally, pointing to a lack of funding and the difficulty of developing competitive complex products.
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