Innoviti Raises Funds From Alumni Ventures In Ongoing Series D Round

Innoviti Bags INR 70 Cr In Its Series E Round, Aims For An IPO In One Year

SUMMARY

Previously, the startup has raised $20 Mn+ in two tranches, but some portion of the same was debt

Innoviti plans to raise a total of INR 300 Cr in equity funding, of which INR 140 Cr will be raised in the coming weeks

Innoviti’s enterprise business alone turned EBITDA positive in October 2020 and the combined business turned profitable in December 2021

Bengaluru-based fintech startup Innoviti has raised additional undisclosed funds in its ongoing Series D round from Alumni Ventures.

Previously, the startup has raised $20 Mn+ in two tranches, from Trifecta Capital, FMO, Bessemer Venture Partners and others, taking the ongoing Series D round’s total to $22 Mn.

Since its first tranche of $10.7 Mn consisted of a mix of debt and equity, it is difficult to ascertain the correct value of the present amount.

The startup has previously announced that it plans to raise INR 400 Cr (approx $53 Mn) in primary Series D equity funding (alongside some debt portion), and then go for a public listing in the next 2-3 years.

As the startup inches closer to its goal, Innoviti plans to raise a total of INR 300 Cr in equity funding, of which INR 160 Cr has been raised so far. The rest of the funds will be raised in the subsequent weeks towards the final closing of the round.

Founded in 2002, Innoviti deploys point of sale (PoS) terminals and processes card payments for retailers. The fintech equips retailers with CRM solutions and states that it processes more than INR 75,000 Cr (approx $10 Bn) of purchase volume annually.

With the current funds, the PoS giant plans to enhance its working capital for its enterprise business, expand marketing initiatives and strengthen its technology while acquiring data science and martech businesses.

Innoviti is also working on a BNPL platform with Visa to help merchants provide loans access to credit by enabling any bank’s customers to opt for a loan at the time of purchase.

Previously, Innoviti has claimed to have turned its core enterprise business of processing card payments for organised retailers cash positive. Innoviti claims to have 76% of the market share in the enterprise category.

The fintech startup competes with the likes of SBI-backed Pine Labs and claims to be highly profitable with gross margins of over 70%. Innoviti’s enterprise business alone turned EBITDA positive in October 2020, and the combined business turned profitable in December 2021.

It had raised its Series C round in early 2020 and used the funds to design and launch GENIE – its flagship product for mid-market electronics merchants.

The product was launched in July 2021. Within six months of launch, it had processed a gross transaction volume (GTV) of INR 1,000 Cr (approx $134 Mn). Innoviti now targets to grow GENIE upto INR 7,000 Cr (approx $935 Mn) by December 2022.

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