iqPOSitive, a Russian developer of automation solutions for restaurant businesses, has been acquired by Revel Systems, a San Francisco-based company operating in the same field. The transaction, which took place in May, has just been revealed by the Russian media.
The terms of the acquisition have not been disclosed, but iqPOSitive’s founder Timur Bagaev said we was “undoubtedly satisfied” with them.
Bagaev had years of experience as a programmer at iiko, a major Russian restaurant automation solution provider, when he founded iqPOS in 2014.
“My colleague Alexander Dovzhenko and myself decided to follow the example of [iiko founders] David Yang and Maxim Nalsky,” Bagaev recalled in exchanges with Russian online publication Lenta.ru and East-West Digital News.
Observing market trends and needs in Russia and abroad, Bagaev paid attention to the new generation of cloud-based solutions with tablets used for a range of processes, from checkout, to employee schedule, to inventory management.
iqPOSitive founder Timur Bagaev says that he is “undoubtedly satisfied” with the terms of his deal with Revel Systems (Photo credit: Timur Bagaev).
Teaming up with Belgian specialists, Bagaev developed an iOS solution to address these functions. The company had no investor and no office at the beginning. “But my knowledge of iiko’s experience allowed us to avoid the mistakes made by competitors,” the entrepreneur said.
“For example, we set our prices at a high level from the very beginning, which allowed us to develop sales via partners, while several companies shut down after pursuing a dumping strategy.”
“No loss-making project can provide quality support and develop new functions to address client needs. Such projects are bound to fail,” Bagaev added.
By late 2015, the iqPOS solution was in use in some 200 restaurants in Russia and abroad.
“We invested zero in marketing. Clients came exclusively from word of mouth and my Facebook page,” Bagaev said.
The company failed to attract investors. “Many of them liked our project, but the international tensions played a negative role. While we wanted to raise just a small amount, some investors suggested that we moved the business to Western Europe. At a certain point, we felt that these discussions were absorbing too much time without bringing a result.”
iqPOSitive was luckier with industry players. “We got in touch with several international players who might be interested in the Russian market,” Bagaev said.
Revel Systems, a leading player with more than 25,000 clients across the world according to Bagaev, did not show interest in the Russian market at the beginning. However, their exchanges with the Russian startup ended up with this unexpected acquisition.
Bagaev is now employed by the US company as its Russia representative.
