Innoviti Ties-Up Rs. 80 Cr. Through Innovative Debt Instruments to Expand its Rapidly Growing Business(13:15 Hrs. IST)
BENGALURU, March 15, 2019 /PRNewswire/ --Innoviti has tied-up Rs. 80 Cr. (approximately USD 12M) through a combination of debt, venture debt and asset financing to further fuel its rapidly growing business. The current round was led by Trifecta Capital and a clutch of other NBFCs. This fund raise follows on the heels of previous rounds of Series A (June 2015) and Series B (July 2017) equity financing, where Innoviti had raised US$23M from existing marquee investors including the Singapore-based SBI FMO Emerging Asia Financial Sector Fund (the "SBI-FMO Fund" jointly setup by SBI Holdings Group of Japan and FMO of Netherlands), Bessemer Venture Partners and Catamaran. Innoviti has grown 2.5X in volumes since last round of funding, clocking USD 5 Bn of annual processing volume. Its throughput per terminal at USD 9000 per month is 3X of national average and 2X of any other payment solution provider, putting Innoviti in a leadership position on processing throughput/terminal/month. This is a vindication of Innoviti's obsessive focus on delivering transaction processing reliability and deep integration with client business operations, through high-quality payment software and automated service processes. Innoviti's Enterprise business, where it powers payments for large enterprises through its advanced patented uniPAY Next technology platform, has turned cash positive in Jan 2019. The current debt raise would be used to fuel this further. The company is also now linking its payments and lending platform to put together solutions for supply chain cash flow management. The current round of debt funding will support Innoviti's sustained focus on driving not just more transactions per terminal, but also qualitatively richer transactions per terminal. Specific uses will include business expansion needs like purchase of infrastructure - including servers, terminals and other product development capital expenses.
Leading payments company, Innoviti Payment Solutions today announced financing of Rs. 80 Crores (~ USD 12 million) to further its vision of digitally organizing the flow of money for businesses across the retail supply chain. The current round was led by Trifecta Capital and a clutch of other NBFCs.
Less than 10% of India's retail payments are currently digital, creating a market opportunity of more than $500 Bn annually. Relentless growth in payments has however brought forth the need for dramatic improvements in the speed and reliability of payments platforms. At the same time the opportunity that payment pipes provide to cloud enable offline retail and then deliver services through these pipes is large. Innoviti's goal is to lay the best possible pipes, deeply integrate them with merchant operations to enrich the data flowing through the pipes and then create use cases from insights gathered from the data to deliver payment, lending and marketing services to the merchants and their consumers.
This obsessive focus on assuring payment transaction speed and reliability for its customer base has helped Innoviti to more than double its revenue run-rate in past 9 months while increasing gross margin to over 70%, the highest in this industry. With annualized payment processing of 5Bn dollars, it now processes nearly 5% of all offline POS-based digital transaction volumes in India. At nearly Rs.6 Lac transaction volume per terminal, Innoviti terminals typically process nearly 3X of national average.
Innoviti's payment platforms serve a marquee client base of merchants including Reliance Retail, Titan, Landmark Group, INOX, Indigo, Walmart and several others. Leading banks such as HDFC, ICICI, Axis, SBI, Standard Chartered, Kotak and Citibank use the platform to access customers for processing their payments and distributing to them loans.
"A rapidly growing Indian economy with fledgling infrastructure needs a different approach to delivery of payment solutions. An approach that first focusses on making every transaction happen, and happen fast. Innoviti with its deep technology expertise has built possibly the best payments platform in the country for doing this. Its throughput per terminal per month at USD 9000, 3X of national average, is testimony to this. With our Enterprise business turning cash positive we have blended our fund raise strategy with debt, that we believe will help in delivering superior returns to all stakeholders," - said Mr. Rajeev Agrawal, CEO, Innoviti.
"We have been impressed with the thoughtfulness and patience that Innoviti has brought to the enterprise payments business. It is a good example of a company which has kept ears close to the customer and led by product innovation while being capital efficient. We are very excited to partner with Rajeev in this phase of growth where our structured debt solution can help the company get to its goals faster and in a more capital friendly manner," - said Mr. Aakash Goel, Partner, Trifecta Capital.
About Innoviti Payment Solutions Pvt. Ltd., Bangalore, India
Innoviti Payment Solutions runs a payment platform that has a unique ability to add intelligence to traditional payment channels, enhancing their value. Merchants, brands and financial service providers use these intelligent payment channels to reduce cost and drive sales of their products. Innoviti processes over Rs. 30,000 Cr. of payment transactions, about 5% of all offline merchant payment transactions in India. This also includes Rs. 1,500 Cr. of transactions involving distribution of loans to consumers and small businesses. The company has raised a total of US$ 35 million of funding till date from marquee investors such as Catamaran Ventures, SBI-FMO fund, Bessemer Venture Partners and Trifecta Capital. For more information, please visit - www.innoviti.com.
Trifecta Capital works closely with companies to create customized venture debt financing solutions to cater to various use cases including working capital financing, capex funding, acquisition financing and special situations. Trifecta Capital also leverages its' investor network to create meaningful collaboration opportunities for its portfolio companies. Investing actively from Fund I and II, it is the largest Venture Debt Fund in the country. Trifecta Capital is backed by India's leading Banks, Insurance Companies, Endowments, DFIs and Family Offices. Since 2015, it has supported over forty companies including three Unicorns. Investee companies include PaperBoat, Rivigo, Big Basket, Urban Ladder, UrbanClap, Box8, Livspace, Cure.Fit, CarDekho, Pharmeasy, IdeaForge and several other market leading companies.
For more information, please visit www.trifectacapital.in
Sarath Chandra Nerella
Senior Marketing Manager
Innoviti Payment Solutions Pvt. Ltd.