Begin the process by holding the power key and selecting the Power off option.
When the phone shuts off, hold Power key + Volume Down till you see the IQM logo.
You may let go of the keys when you see the logo and wait for the Recovery mode to appear on the screen.
By now you will be located in the respected mode, from there select Wipe data/factory reset using Volume keys to navigate and confirm it using Power key.
When you're being prompted, confirm your decision once more by selecting OK.
The device will start removing all personal data and it will take up to couple minutes so be patient, when the process is finished your device will reboot and you will shortly be presented by android setup screen.