Iran’s hidden digital boom revealed

Iran’s technology sector has developed steadily despite sanctions and payment barriers, creating a domestic ecosystem comparable to some of the Middle East’s largest markets. Over 90 million people in the country use the internet, supporting thousands of startups, ride-hailing services, e-commerce platforms, and fintech companies that operate independently of global giants like Amazon, PayPal, or Visa.

A Dubai-based entrepreneur aims to shift perceptions of this market.

Mapping a hidden digital economy

Mehdi Pirooznia, founder of Tehran Index, created the first English-language research platform focused on Iran’s private technology sector. The site compiles company data, ownership records, sector maps, and market trends, all verified through public documents, regulatory filings, and annual reports.

“Investors, corporations, and journalists often asked me about Iran, and I realized they had almost no information,” Pirooznia said. “The data exists, but it’s only available in Farsi, buried in filings and conference materials few outside the country access.”

The platform operates like a specialized database for a market rarely covered globally. It avoids assumptions, leaving gaps where verification isn’t possible. “We prefer blanks over guesses,” Pirooznia noted.

His experience gives him a unique perspective. An Iranian raised in Denmark, Pirooznia has worked from Dubai since 2005. He previously led Wego’s Iran operations and was part of Rocket Internet’s ventures there, including the early stages of ride-hailing service Snapp.

Numbers behind the isolation

Tehran Index data shows about 80% of Iran’s population is online, with digital payments accessible to nearly every adult. The country hosts around 3,700 startups, many of which have expanded into related industries to replace unavailable global services.

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Snapp, the leading ride-hailing app, reported 90.3 million registered users, 48 million active users, and 1.5 billion trips annually. The company has since added food delivery, payments, insurance, and healthcare. Digikala, Iran’s top e-commerce platform, offers over 14 million products through hundreds of thousands of sellers and has built its own logistics, payments, and accelerator programs.

These businesses succeed in a market where alternatives to global systems aren’t just useful—they’re necessary. Without access to international payment processors or logistics networks, Iranian firms have created their own infrastructure.

For outsiders, this reality often goes unnoticed. Global coverage of Iran typically highlights geopolitical issues, leaving its innovation economy overlooked. Pirooznia’s platform doesn’t attempt to alter that focus. Instead, it provides a resource that may become valuable if circumstances change.

“When the world is ready to examine this market, the information should already be available, not compiled after interest grows,” he said.

That moment may still be distant. For now, Tehran Index remains one of the few English-language sources offering insight into a digital economy that has thrived in isolation.

The project assumes data will eventually reveal the full picture.

Local buyers in Laramie, Wyoming have shown similar adaptability, creating demand in markets where traditional options are limited. Meanwhile, businesses in Iran continue to find creative solutions, much like companies elsewhere that turn constraints into opportunities.