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IQcard gets $3.7m in yet another fintech deal

0 23 December 2013

IQcard, which specializes in creating and supporting loyalty schemes for retailers based on pre-paid bank cards, has raised $3.7 million in a round led by Kenges Rakishev, one of Kazakhstan’s top-50 most influential individuals.  

Fastlane Ventures and Direct Group, which first invested in IQcard in March 2013 in a $2.5 million round led by Paradigm Investments and TA Venture, also contributed the recent round. This deal continues Rakishev's close relationship with Fastlane, a Moscow-based fund controlled by French businessmen Pascal Clément. Last year the Kazakh multimillionaire invested $13 million in the fund. 

IQcard’s current retail partners include E5.ru (the online arm of the X5 retail group), the Russia and CIS branch of international tour operator TUI and book shop Respublika, while it has already issued 350,000 bank cards. As well as benefiting from loyalty schemes, IQcard holders can also take advantage of a range of other services, including transfers, special credit conditions and software that allows them to monitor and analyse their spending.

Ekaterina Konovalova, the project’s CEO, confirmed that the money will be used to develop new services for card holders and retailers and to expand into CIS countries. 

According to management consulting firm A.T. Kearney pre-paid bank cards have serious potential in Russia. They estimate that Russians used pre-paid cards to spend $56 billion in 2013 and predict that this figure will rise to $110 billion by 2015. 

Financial services are certainly in vogue at the moment among Russian investors. In November fintech was the third most popular sector

Top image via Shutterstock 

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