Bengaluru-based digital payments solutions company Innoviti has raised $5 Mn (INR 35.6 Cr) in debt funding from FMO, the Dutch development bank. The bank in its disclosure said that Innoviti’s payments solution is designed for small businesses in line with the bank’s strategy of catalysing economic growth and bridging the digital divide.
The company has earlier raised funds from marquee investors such as Catamaran Ventures, SBI-FMO fund and Bessemer Venture Partners.
Founded in 2002, Innoviti deploys point of sale (PoS) terminals and processes card payments for retailers. The company claims to have turned its core enterprise business of processing card payments for organised retailers cash positive.
The company claims to processes over INR 40,000 Cr. of payment transactions, about 6% of all offline merchant payment transactions in India. This also includes INR 1,500 Cr. of transactions involving the distribution of loans to consumers and small businesses.
Recently, the company said that its plans this year include using technology to once again disrupt the market through:
- Industry-focused products across healthcare, apparel, food & grocery, restaurant and consumer durable and mobile segments
- Deliver and service these products through innovative distribution models that will allow for rapid profitable growth.
Innoviti also looks to increase its GTV per INR to INR 500 this year, in this road to becoming cash positive within the next 12 months.
Innoviti’s payment platform clientele includes Reliance Retail, Titan, Landmark Group, INOX, Indigo, Walmart, and several others. Banks such as HDFC, ICICI, Axis, SBI, Standard Chartered, Kotak, and Citibank use the platform to access customers for processing their payments and loan distribution.
According to DataLabs by Inc42, till 2018 Indian digital PoS terminal startups raised $406 Mn in funding. Some of the notable POS terminal providers are Ezetap, Pine Labs, Innoviti, Mosambee, Phonepe, Payswiff among others. India’s POS terminal market is estimated to reach $450 Mn at a CAGR of over 10% from 2017 to 2024.