Digikala Co-Founder: Sanctions Relief Could Make Iran a “Small China” in E-Commerce

Hamid Mohammadi, co-founder of Digikala, has stated that even a partial removal of sanctions could turn Iran into a 'small China' in the field of e-commerce.

Strong E-Commerce Foundations

The Canadian online publication Longtrepreneur conducted an interview with Digikala's co-founder. In the interview, Hamid Mohammadi expressed his belief that Iran's e-commerce foundations are robust enough to transform the country into a 'small China' with even partial sanctions relief. This development could lead to a domestic market of 90 million people with deep technical capabilities.

Misunderstandings About Iran's Tech Ecosystem

Another section of the article highlighted Mohammadi's view that external observers have a profoundly inaccurate understanding of Iran's tech ecosystem:

Despite sanctions, the country has a young, highly technical population, with engineering talent comparable to global hubs. Between 2014 and 2016, dozens of startup events, accelerators, and venture programs emerged across the country. Even after sanctions returned and foreign investment evaporated, innovation accelerated.

Overcoming Infrastructure Challenges

Mohammadi addressed past infrastructural limitations. He cited Digikala as a prime example. Lacking common infrastructure found in Western markets, such as third-party logistics networks and consumer credit systems, Digikala built everything internally.

Digikala is a prime example. Because Iran lacked the infrastructure common in Western markets - third-party logistics networks, consumer credit systems, and payment rails - Digikala had to build everything internally. Today, it operates a national logistics system that delivers over 95% of orders directly, a consumer credit platform powering roughly a quarter of its GMV, and custom scoring models created in a country with no credit bureaus. This internal reinvention produced a level of technical sophistication that many former Digikala engineers - now working in Europe - describe as more intense and demanding than their roles at global tech companies.

Challenges of Elite Migration and Investment

The co-founder also commented on the migration of elite engineers and the absence of foreign investment in Iran's digital economy.

Still, Iran faces challenges. Top engineers often leave for Europe, where salaries are drastically higher. Foreign capital remains scarce; total investment in Iranian startups over two decades is less than a single late-stage round in Turkey or Dubai.