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Mobile card reader 2Can raises $5 million

0 31 March 2014

Fintech startup 2Can has raised $5 million in a Series B round funded by InVenture Partners, Almaz Capital Partners and the ESN Group. It brings the total investment in the project, which raised $2 million from InVenture and Almaz at the end of 2012, to $7.3 million. 

2Can is a Russian analogue of US-startup Square, which allows smartphones and tablets to be used as card readers thanks to a chip that translates signals from the card’s magnetic strip into a signal that can be read by the project’s app. 2Can’s partners include Promsvyazbank, Russian Standard Bank, Raiffeissen Bank, Otkritiye Bank and Yandex.Money. 

In 2013 the project’s total number of transactions increased two-hundred-fold, and it became the first Russian project to secure EMV-certification for a mobile card reader. Its main competitors in Russia are LifePay (a Life.SREDA portfolio company) and PayMe

Sergey Azyatyan - Managing Partner at InVenture Partners

We invested in 2Can 18 months ago, and since then the company has shown remarkable growth indicators. Today the proliferation of regular card readers in Russia is 5 times lower than in Europe and 7 times lower than in the USA. 2Can is in a position to change this. It’s also important to note that Square, an American equivalent of 2Can, was valued at $5 billion in its last investment round. In Russia, where mobile card readers are even more necessary, there is massive potential. Our investment will be used to strengthen 2Can’s position in the sector.

Nikolay Zhmurenko - CEO and Co-Founder of Smartfin (2Can’s parent company)

At the start of 2014 we released services for insurers, restaurants and logistics firms. We are planning to launch other services for priority sectors, to introduce new functions, to expand our partnerships with banks and payment services and to increase our client base. 

For ESN Group this is an unusual investment. The company, which is headed by Gregory Berezkin, owns a range of energy companies as well as a significant stake in daily newspaper Komsomolskaya Pravda. It declined to comment on the deal. 

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