From Tajarib. Re-published with permission by Iraq Business News.
QiCard Acquires Miswag
The fintech conglomerate continues its series of investments with the acquisition of Iraq's largest e-commerce platform for an undisclosed seven-figure sum
Tajarib has announced the International Smart Card Company's (better known as Qi or QiCard) seven-figure acquisition of Iraqi e-commerce giant Miswag.
The announcement occurred during "Investor Connect," an event organized by Tajarib and The Station aimed at bridging founders and startup owners with capital and investors.
Context
Founded in 2014, Miswag started from modest beginnings but has grown to play a pivotal role in Iraq's e-commerce sector, addressing local market demands and building a loyal customer base. The company's emphasis on quality and customer experience set it apart early on, helping it evolve alongside Iraq's digital landscape.
From 2016 to 2019, Miswag secured a total of $3 million from both Iraqi and international investors, a milestone that underscored investor confidence in the potential of Iraq's tech ecosystem and in Miswag's unique market position.
The acquisition was completed earlier this year, with the announcement taking place this month as key integrations in services, teams, and operations were finalized. While financial specifics remain private, it is widely assumed that the acquisition occurred for a seven-figure sum, transferring full ownership of the company to Qi.
Ammar Ameen, Founder and CEO of Miswag, stated:
"Being the first and oldest homegrown tech startup in Iraq, Miswag has always been compelled to contribute to the foundation of the new tech economy infrastructure. This acquisition marks an important milestone in the company's journey as it unlocks a wider spectrum of resources and meaningful ecosystem integrations that will enable faster and more effective horizontal and vertical growth."
"We are thrilled to begin this new chapter as a key player in the Qi group team and look forward to deploying Miswag's innovation and experience within the umbrella of Qi to push an extra step toward the transformation to the digital economy, creating more jobs and opportunities and unlocking larger potential for the Iraqi market."
Ali Moneam, Qi's Chief Executive Officer, explained that acquiring Miswag aligns with the company's strategy to diversify and expand into e-commerce. He emphasized that integrating the platform would enhance the customer experience, reinforcing their commitment to innovation and market growth.
Luay Al-Obaidi, Qi's Chief Product Officer, added:
"We pursued this acquisition as part of a strategic decision to go beyond payments and address a vital pillar in people's lives: e-commerce. We looked for the best in the Iraqi market-the longest-standing, most innovative platform with a team that built it from the ground up, paying attention to every detail. That's why we chose Miswag."
"To preserve Miswag's agility and its drive for improvement, we took a hands-off approach. We kept things simple: we didn't alter their daily operations, left the team structure intact, and kept Ammar as CEO ... Post-acquisition, we simply enabled their integration with our SuperQi super app and provided them with a payment solution. Beyond that, we allowed them to grow independently."
New Horizons
Since the acquisition concluded in April of this year, Miswag has experienced a tenfold increase in growth over a short period, attributed to the integration with Qi and the introduction of new services like buy-now-pay-later solution "Aqsat Mall," which streamlines Miswag's access to a broader audience of Iraqi consumers boosting both revenue and sales while reducing resource demands.
Originally known for pioneering financial inclusion and e-payment solutions in Iraq, Qi is now expanding its footprint by reaching consumers directly through both digital platforms and physical products.
This strategic pivot represents a major step in diversifying away from state contracts and government-dependent revenue streams, positioning the company to capture more of the consumer's needs in daily life. Miswag itself is set to be integrated as a mini-app within SuperQi, exposing it to millions of customers on a monthly basis.
Echoes from the Ecosystem
This acquisition, while seen by some as a distressed sale in a challenging fundraising landscape, also signals a shift in strategic thinking among Iraqi companies. Instead of building a ground-up alternative, Qi opted for an acquisition-an approach that reflects a maturing market where buyouts and mergers are becoming viable pathways for growth
Miswag now is not the only corporate-owned e-commerce platform, it stands alongside players like Tamata (operated by the Earthlink Group), Amal (a subsidiary of the Majd Digital Group), and Shopini (owned by Basra-based Fusteka Group).
Although many players have existed in this market for years, Miswag remains the leading contender, thanks to its streamlined operations and optimized customer experience. Observers anticipate this unique integration with Qi's financial solutions will further strengthen Miswag's position in the market.
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