- EQIQ has announced a $3 million anchor investment in InstaBank, as part of a $15 million funding round to launch Iraq’s first digital bank.
- According to the Central Bank of Iraq’s licensing requirements, the establishment of the bank requires a total capital of 100 billion Iraqi dinars, to be subscribed over a period of five years.
- EQIQ focuses its investments on the Iraqi market, particularly in the areas of fintech, e-commerce, and delivery services, and has so far invested $8.5 million in five startups.
Mohamed Al-Hakim, co-founder of the EQIQ fund, announced the fund’s participation in a $15 million funding round to support the launch of Iraq’s first digital bank, InstaBank.
Al-Hakim explained that EQIQ contributed a $3 million anchor investment as part of the round, supporting the bank’s vision to deliver a fully digital banking experience aligned with the latest advancements in financial technology.
He noted that the capital required to establish the bank, as mandated by the Central Bank of Iraq, is 100 billion Iraqi dinars to be subscribed over five years—equivalent to around $15 million annually.
He added that the fund has so far invested $8.5 million in five Iraqi startups, allocating approximately 80% of its capital to fintech, e-commerce, and delivery services. The remaining 20% is reserved for promising investment opportunities outside these sectors, provided there are inspiring founders or innovative solutions.
Al-Hakim also pointed out that the Central Bank of Iraq issued new regulations in May 2024 for licensing digital banks. He emphasized that these banks will operate under the modern Iraqi Banking Law, which supports innovation and offers a solid infrastructure for digital payments. However, he also stressed that Iraq’s financial sector still requires strong investment institutions to accelerate its digital transformation.
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