Update: June 15, 2020 | 10:45 AM
After the story was published, the company filed ministerial filings on June 12, showing that it has raised INR 44.9 Cr from FMO and Bessemer.
Bengaluru-based digital payments solutions startup Innoviti has raised an undisclosed amount in Series C funding from Netherlands-based FMO-Entrepreneurial Development Bank, along with existing investor US-based Bessemer Venture Partners.
Rajeev Agrawal, CEO of Innoviti Payments, told Moneycontrol that this may be the company’s last funding round as it plans to generate cash from its books within six to eight months. He also said that the company may only consider another fundraise if there’s an opportunity for acquisition or inorganic growth. The latest round is said to be all primary capital and had no secondary component.
Prior to this, Innoviti raised $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 last year. Excluding the latest round, the company has raised close to $25 Mn from marquee investors such as NR Narayana Murthy’s Catamaran Ventures, SBI-FMO fund, and Bessemer Ventures.
Founded in 2002, Innoviti 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. According to its website, the company processes around 150 Mn transactions annually and it claims to have around 16 patents to its name.
Overall, it claims to process over $6.5 Bn gross payments volume annually through its terminal and has deployed more than 80K terminals across 20K shops. The company claims to process over INR 40K Cr of payment transactions, which makes up for 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.
Innoviti caters to restaurants, educational institutes, fashion and lifestyle brands, retail brands, entertainment companies, tour and travel companies, healthcare providers and other businesses that require PoS services. It plans to offer other tech tools in the near future to merchants to help digitise their business. To ease customer acquisition, Innoviti said it would leverage wholesale distribution channels to sign up merchants.
Innoviti’s biggest rival in the payment processing domain is Pine Labs. In 2019, Innoviti had filed a patent infringement suit against Pine Labs on the payments processing technology that enables UPI payments at retail POS terminals. Besides this, the company also competes with other digital payments facilitators such as Paytm, PhonePe, Google Pay and others.