Iran had defeated Mongolia 50-16 and lost to Japan 33-21 in the preliminary round. Team Melli also drew 23-23 with Saudi Arabia.
Veselin Vujovic’s team will play Bahrain and South Korea on Saturday and Sunday, respectively.
A record high of nearly 12,500 athletes from 45 countries and territories compete across 40 sports in the 2022 Asian Games.
Iran has sent 289 male and female athletes to Hangzhou in 34 sports events.