The Iranian team lost to its rival in straight sets (16-25, 18-25, 19-25).
Sarmayeh Bank lost to Supreme Chonburi of Thailand 3-1 and defeated Taiwan Power of Chinese Taipei in its second match.
Sarmayeh will face Tianjin Bohai Bank of China in quarter-final on Monday.
The competition is being held in Ust-Kamenogorsk, Kazakhstan from May 25 to 31.
The tournament will serve as the Asian qualifiers for the 2018 FIVB Volleyball Women's Club World Championship with the champion qualifying for the world championship.