Altegio: How IT Solutions Can Transform Armenia's Beauty and Services Industry

YEREVAN, December 15. /ARKA/. Altegio, one of the largest SaaS platforms for business automation in the service sector, has been actively expanding its presence in Armenia since 2022. In an interview with ARKA, news agency the co-founder of the company Yuri Petrov speaks about why the penetration of digital solutions in the beauty services industry in Yerevan is still lower than in major cities in Eastern Europe or Kazakhstan, which platform features are in demand among local entrepreneurs, and how IT tools help small and medium businesses reduce the likelihood of errors, increase revenue, and retain customers.

ARKA - Yuri, we're talking at the Ai9 Startup Campus. Why here?

Yuri Petrov - I've been developing software for small and medium businesses for the past 15 years. In 2022, like many other entrepreneurs, Armenia was the first point of attraction. I've known your country well for a long time, which is why I invested in Ameriabank securities and several tech companies here, including the Ai9 Startup Campus. However, my main project remains Altegio, which already has over 40 employees in its Yerevan office. Our commercial team in Yerevan works with countries of the former Soviet Union, and most of Altegio's developers are legally registered with the Armenian company, although the company has offices in five other countries: Hungary, Kazakhstan, Brazil, Cyprus, and the UAE. Our company brings significant benefits to both the local market and the local budget.

ARKA- Which benefits exactly? What can Altegio offer businesses and clients?

Yuri Petrov-Since launching its Yerevan office in 2022, Altegio has been helping businesses automate processes: online client booking via Google Maps, Instagram, Facebook, WhatsApp, and a website widget; maintaining a client database; managing employee schedules; launching marketing campaigns; sending client notifications and reminders via SMS, WhatsApp, and inApp; promoting loyalty programs; calculating employee salaries, and, of course, monitoring business performance. For clients, this means convenient 24/7 online booking and appointment reminders, while for business owners, it means greater organization, improved manageability, and increased revenue. 

ARKA -How would you rate the beauty services market in Armenia in terms of digital penetration? 

Yuri Petrov- Compared to a typical European city with a population of over a million, the penetration of such products is lower. It's difficult for me to say why. In my opinion, the services our clients in Yerevan provide are very high quality, and the entrepreneurs are savvy; their names are household names: Beauty Atelier By Tanya, Haze Hairdressing Space, Prime Beauty Space, Gloss Beauty Space, and others. Perhaps the barrier to entry is an issue, as prices in Yerevan are significantly lower than in Budapest, for example, where our head office is located. 

ARKA- What share of the beauty market are you already involved with? 

Yuri Petrov - About 25%. We estimate that there are approximately 1,000 beauty industry facilities operating in Yerevan. This represents a significant share of our statistics: we have over 12,000 clients worldwide with a combined staff of over 80,000. We process approximately 60 million appointments annually, worth a total of $1.2 billion.

ARKA- What's the problem with Armenian businesses not digitalizing?

Yuri Petrov - I think the problem is the additional costs, even though our prices are almost three times lower than our Western counterparts. In the Armenian market, we've set prices even lower than in Eastern Europe. Our client in Armenia pays an average of $25 per month for the program. At the same time, management efficiency increases significantly: we've calculated that, thanks to Altegio, the number of no-shows is reduced by 60%, and the number of clients increases by 30% thanks to online booking. The owner saves up to 20 hours per month on routine but important tasks like payroll.

ARKA- Can we say that by using your services, a business can do without an administrator scheduling clients with technicians, since booking online is possible through the platform?

Yuri Petrov - No, we don't aim to replace a receptionist. Yes, clients can book online. But a receptionist is a kind of magician. There's a personal connection and the opportunity to resolve any issues or organizational nuances on the spot. The goal of this solution isn't so much to offload all the work from humans, but to reduce the likelihood of errors, make their work more organized, and the quality of service provided more predictable.

ARKA- In other words, these solutions aren't designed to replace humans, but to assist them.

Yuri Petrov - Yes: many administrators love our solution, and typically, if they change jobs, they convince the owner to switch to our software.

ARKA- How does the behavior of Armenian users of your platform differ?

Yuri Petrov - Users in the post-Soviet space generally differ little. However, payment methods vary: consumers in different markets are accustomed to their own, often local, fintech tools.

ARKA - To what extent are your products adapted to Armenian specifics, taxes, payment systems, and electronic receipts?

Yuri Petrov - Adapting fiscalization to each specific country is very expensive. In Armenia, the revenue volume is such (several hundred clients) that the development costs alone will pay for themselves within a year. Therefore, we are developing a universal module for most of the countries where we operate. Armenia will be one of the first countries to implement fiscalization. Regarding checks, I think they'll be available in our system soon.

ARKA – Are you planning integration with Armenian banks and payment platforms?

Yuri Petrov – Yes, we definitely are. Fintech is one of our key strategic areas. For example, we recently launched We've been integrating with Uzum, the largest digital ecosystem in Uzbekistan. We're actively seeking a similar partner among Armenian banks or startups who would be willing not only to integrate with us and sell their services to our clients, but also to become our ambassadors, strengthening our brand.

ARKA - What are the most in-demand Altegio features in Armenia?

Yuri Petrov - For small and medium-sized businesses with a limited range of services, this primarily includes scheduling management, organization, and online booking with notifications and SMS reminders. Larger companies are embracing automation. Customer loyalty and retention programs are important to them, and these are complex and impossible without software. While scheduling can be done on paper, a complex, step-by-step payroll system, for example, requires software.

ARKA - Which product development areas do you see as the most promising in Armenia in the next 2-3 years?

Yuri Petrov - BNPL (Buy Now, Pay Later) products. This means you can purchase a product or service now and pay for it in installments. But it's not just BNPL for haircuts, for example. It's what allows businesses to "lock in" customers, selling them so-called subscriptions. For example, a company might sell someone who gets their hair cut twice a month a subscription for 24 haircuts with a 12-month installment plan. This way, they'll "lock in" for the entire year. We plan to focus on such products. This stimulates consumption, a very powerful tool that helps small and medium businesses.

Over time, the automation of routine processes that we offer businesses will become a must-have tool. That is, businesses that don't have it will be less competitive.-0-