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Region : Europe and Central Asia

Sector : O-ME - Online payments, ecommerce payments

Department : Telecom,Media,Tech & Venture Capital

Environmental category : C

Status : Pend FAP

Date SPI disclosed : January 16, 2015

Projected board date : February 20, 2015

Project Description : Iyzico is a Turkish payment service provider (PSP) that offers ecommerce merchants an easy way to accept payments online plus various value added services such as analytics, fraud protection, and settlement. The Company was founded in May 2012 by two entrepreneurs who had previously worked at leading ecommerce payment companies in Europe. IFC is considering an equity investment of up to US$3m to help the company become of one the key payment service providers in Turkey.

Project Sponsor and Major Shareholders of Project Company :

The majority of the company is owned by the sponsors and founders, Barbaros Euzbugutu and Tahsin Isin. The remaining major shareholders are seed & venture capital investors Speedinvest, 2-1-2 Capital, and Beenos Asia.

Total Project Cost and Amount and Nature of IFC's Investment :

The total project cost is estimated at just above $6 million. IFC is considering to provide $3 million by subscribing to preferred convertible stock in the company.

Location of Project and Description of Site : The company s headquarter is in Istanbul, Turkey. The investment will be primarily spent for product development and business expansion in Turkey

Expected Development Impact :

Facilitation of electronic payments: The investment in Iyzico will promote the development of a low cost and pervasive payment infrastructure in Turkey and the region. Making payments electronically rather than in cash has been shown to generate efficiency and promote economic development

Wider Availability of Goods and Lower Prices: PSPs are an integral part of the online payment infrastructure and are an enabler for the e-commerce sector. Therefore a good payment infrastructure will result in better availability and distribution of goods and services.

IFC's Expected Role and Additionality :

Best practices and expertise in FinTech: IFC will be able to assist Izyico by sharing global best practices and expertise in the payment sector

Network of MNOs and Financial Institutions: Through an IFC investment, the company will gain access to IFC's network of financial institutions within the region

Sign of Approval: An involvement from IFC would enhance visibility and recognition among institutionals clients (i.e. banks and Financial Service Providers) and the domestic banking regulation and supervision agency

Environmental & Social Categorization Rationale :

The key E&S risks in this project will be in the management of Iyzico s human resources, leased spaces, and equipment. Those risks are expected to be low, so this project is classified as Category C according to IFC's Environmental and Social Review Procedure. Iyzico will be required to implement

country :Turkey

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Publication:Mena Report
Date:Jan 19, 2015
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