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

About two months after Inc42 exclusively reported that digital payments solution company Innoviti is eyeing to close its Series E funding round at INR 75 Cr, the company has officially announced close of the round at INR 70 Cr ($8.3 Mn). 

The funding round was led by Random Walk Solutions and saw participation from existing investors like Bessemer Venture Partners, Patni Family Office India and Alumni Ventures. The investments were made in a combination of equity and debt. 

While disclosing the fundraise, the company said it will be looking to make its public market debut with an initial public offering (IPO) within the next 12 months. 

It also claimed that it is operating at an annualised run rate (ARR) of INR 160 Cr and an EBITDA loss of INR 8 Cr. As of now, it is eyeing to become profitable in the next couple of quarters.

Founded in 2002 by Rajeev Agrawal, the company allows users to accept payments and integrate real-time sales data into critical business processes. It claims to process over INR 72,000 Cr of purchase volume annually from across 2,000 Indian cities and over 20,000 offline and 3,000 online merchants. 

In March, it secured an online payment aggregator (PA) licence from the Reserve Bank of India (RBI) to operate its PA ‘Innoviti Link’. It said that Innoviti Link is growing at a 10% month on month rate. 

Besides its PA business, the company offers Enterprise POS solution uniPAYNext, which it claims is operating at an EBITDA of 20%, and growing at a 23% annualised rate. It also claims that its Electronics EMI solution, GENIEPlus, is growing at 80%  annually and is expected to breakeven by March 2025. 

The close comes about three months after the company intended to net the fresh capital. In April, the company was looking to raise INR 115 Cr from existing and three new investors. Back then, the company had plans to utilise the fresh capital to fuel its mid-market and online expansion.

On backing the startup again, Bessemer Venture Partners’ India head Vishal Gupta said, “We have seen their ability  to retain and grow their relationships in the tough Indian enterprise retail market and are excited to  support the next phase of their growth journey in the mid-market and online spaces.” 

The company’s revenue from operations for its last financial disclosure for the year 2022-23 (FY23) stood at INR 110.2 Cr. Its losses, on the other hand, stood at INR 86.56 Cr.