Russian Square Clone 2can Raises $5M To Scale Up

Russian mobile payments startups 2can similar in operation to Square and iZettle (accepts payments from Visa and MasterCard cards through a mobile card reader connected to a smartphone) has raised a $5 million Series B round of funding led by InVenture Partners with participation by Almaz Capital Partners and ESN Group.

The cash will be used to integrate with leading Russian banks and accelerate the product.

The company claims that its revenue increased 500 times in 2013, with the number of transactions made through 2can terminals increasing 200 times over the same period – though with now actual figures these numbers should be taken with a grain of salt.

Launched in September 2012, 2can allows merchants to use iOS and Android smartphones or tablets as secure terminals for accepting card payments.

Sergey Azatyan, co-founder and managing partner of InVenture Partners says the penetration of POS terminals accepting card payments in Russia is now 5 times lower compared to Europe and 7 times lower than in USA, so there is plenty of growth to be had per the next few years.

The Series B round brings 2can’s total funding to $7.3 million. InVenture Partners led the previous investment round.