Palta co-founder Alexey Gubarev: Cyprus' role on the global tech scene is growing

Palta is a health and well-being technology company. Its goal is to empower billions of health-aware people in the next decade to live healthier and happier lives with the help of its products. In our short interview, Palta Co-Founder Alexey Gubarev expands further.

Can you tell us more about your company, when you were established in Cyprus and how many offices / members of staff you currently have?

We established Palta in 2016. It's a health and well-being technology company that includes Lensa, Flo, Simple Fasting, Zing Fitness, and other apps. All Palta apps have over 55 million users. Currently, the company employs over 750 people, 180 of them in Cyprus.

What do you believe sets your company apart from its competition?

Palta is more than just another venture fund in a crowded marketplace. We are setting ourselves apart from our competition in several ways. Our approach is characterised by commitment to innovation, a deep understanding of the health and well-being sector, and a focus on supporting entrepreneurs who share our vision for improving people's lives.

Our team also has a wealth of knowledge and experience in the health and well-being sector. We have experts with backgrounds in everything from biotechnology to nutrition, which gives us a unique perspective on the companies we invest in. It means we can provide more than just financial support. We also offer our portfolio companies valuable advice and mentorship from seasoned professionals who understand their industry. We are working closely with startups to discuss strategies, having weekly calls, and engaging with a marketing team that gets the word out.

How has your experience of doing business in Cyprus been and would you recommend it to other foreign interest companies looking to relocate?

Ten years ago, Cyprus was missing from the regional tech map. However, it is becoming increasingly visible today and presents numerous opportunities for foreign interest companies seeking to relocate. The country's favourable tax legislation is one of the most compelling reasons to do business in Cyprus. Owners of companies benefit from a low corporate tax rate, personal tax and income tax discount which was announced in summer 2022. Climate and friendly environment is a great addition to all of that.

My understanding of doing business in Cyprus has been positive, and I would recommend it to other foreign interest companies looking to relocate. As one of the founders of the non-profit association TechIsland, I think that a more robust tech market will undoubtedly be excellent for the Cyprus economy.

What is your view of your sector (locally and on a global level) both as it is today and its potential for growth?

The IT sector has grown significantly in recent years, both in Cyprus and globally. In Cyprus, IT is developing a lot and shows excellent growth potential. The country has started a vibrant startup scene, with many young entrepreneurs starting businesses in various industries. However, access to funding remains a challenge for many of these startups, and the venture fund sector can play a vital role in addressing this issue. By providing capital and guidance, venture funds can help startups accelerate their growth and expand their reach.

Where do you see your company in five years? Are there any immediate plans you can reveal to us, for example new products, services, plans for expansion?

Palta doesn't set the exit goal for a particular project but gradually increases our stake. The company's medium-term goal is an IPO, and its long-term goal is integrating products into a unified ecosystem.

How much focus do you put on CSR and being part of the local community?

Palta gives money to City Friends Club, a charity organisation dedicated to keeping Limassol neighbourhoods clean. City Friends Club includes two teams of professional street cleaners and six trucks that operate daily to clean the streets of Limassol. Since 2022, when an NGO was founded, more than 1000 people have participated in City Friends Club clean-up events.