Innoviti Closes First Tranche Of $10.7 Mn In Ongoing Series D Round

SUMMARY

The current round was led by Trifecta Debt Fund, Patni Advisors and Bessemer Venture Partners with participation from notable individual investors

Innoviti plans to raise INR 400 Cr (approx $53 Mn) in primary Series D funding in the upcoming months before it files for an IPO in 2024-25

The merchant-focussed fintech startup claims to have processed over 527 Mn transactions worth $22 Bn and set up over 80K PoS terminals to date

Bengaluru-based digital payments solutions startup Innoviti has raised INR 80 Cr (approx $10.7 Mn) in equity and debt in an ongoing Series D round. Led by Trifecta Debt Fund, Patni Advisors and Bessemer Venture Partners, the round saw participation from notable individual investors including Sanjoy Bhattacharya and Polycab’s Bharat Jaisinghani.

As the startup plans to go for a public listing in the next 2-3 years, Innoviti plans to raise INR 400 Cr (approx $53 Mn) in primary Series D funding. The subsequent tranches will be closed in the upcoming months.

The funds raised will be used to fund the working capital for its enterprise business, marketing and strengthening technology. Innoviti also plans to simultaneously acquire data science and martech businesses.

Founded in 2002, the startup deploys point of sale (PoS) terminals and processes card payments for retailers. It claims to have turned its core enterprise business of processing card payments for organised retailers cash positive. Innoviti claims to process more than INR 75,000 Cr (approx $10 Bn) of purchase volume annually and has 76% of the market share in the enterprise category.

According to its website, the startup claims that it has processed more than 527 Mn transactions worth $22 Bn and set up over 80K PoS terminals to date.

Prior to this, Innoviti raised an undisclosed amount in Series C round, a $5 Mn (INR 35.6 Cr) debt funding from FMO back in February 2020 and $11.5 Mn (INR 80 Cr) debt funding round from Trifecta Capital and a few non-banking finance companies (NBFCs) in March 2019.

Post its Series C round, Innoviti had launched an enterprise solution for local mobile merchants GENIE. The product was launched in July 2021 and in only six months had a gross transaction volume (GTV) of INR 1,000 Cr (approx $134 Mn) targetted to grow by INR 7,000 Cr (approx $935 Mn) by December 2022.

Innoviti is also working on designing PoS products specific to the automotive and jewellery industries and a loan-focussed platform in collaboration with Visa.

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.

The startup expects to turn cash positive over the next 12 months and file for an IPO in 2024-25.

As per media reports, Innoviti competitor Pine Labs is eyeing a $1 Bn public listing and is likely to get itself listed on the US-based NASDAQ stock exchange this year. It has already hired Morgan Stanley and Goldman Sachs as advisors for its listing.