Second close of Rs. 75 Cr. was carried out by Innoviti’s existing shareholder, FMO N.V., a Development Finance Bank, from the Netherlands. The first close was carried out in Jan 2022 for Rs. 80 Cr., through a mix of debt and equity from Trifecta Debt Fund, Patni Advisors, and Bessemer Venture Partners, besides a clutch of individual investors. The company will be raising another Rs. 125 Cr. over the next few weeks towards the final closing of a Rs. 280 Cr. Series D round.
Digitization has made it easy for any business to reach their target consumer and make them aware of their products. However, it has done so for their competition too! This has led to an increased cost of conversion for all businesses. Innoviti provides a collaborative commerce platform that brings together merchants, banks, and product brands, enabling them to reduce the cost of conversion by acquiring customers together. The platform enables these diverse businesses to partner and turn payment transactions into attractive purchase tools that can be used at a point of purchase to urge consumers to buy better products and more products.
Processing over Rs. 75,000 Cr. of annualized purchase volume, Innoviti is extracting more value from payment transactions than anyone else. Innoviti commands a dominant market share of 76% in the enterprise category, providing category specific purchase tools to grocery, fashion, healthcare and electronics merchants.
“We are pleased to have FMO double-down on their investment in Innoviti with a super pro-rata subscription to the Series D offer. Innoviti desires to become the purchase partner to every Indian. Helping enrich their lives by helping them take better purchase decisions. We are doing this by using technology to get businesses that talk to the same consumer to talk to each other, share marketing budgets and channel them towards acquiring customers together. A key differentiator for us has been developing sophisticated technology and delivering it through simple, exceptionally crafted purchase experiences. This is hard, very hard to put together. We are proud to have done that.
This customer centricity and a relentless focus on excellence has helped us become the most capital efficient company in this space. With the current Series D, we hope to become a sustainable business and list on the exchanges over the next couple of years.” – said Mr. Rajeev Agrawal, CEO, Innoviti.
“FMO is pleased to continue supporting our long-standing investee, Innoviti in their next quest to enable small retail merchants to provide easy payment solutions such as BNPL to their respective customers. Innoviti’s newest solution ‘Genie’, is a collaborative payment platform bringing merchants, banks and brands together and by doing so, ‘Genie’ makes these small(er) merchants more competitive and bankable. Innoviti will foray into tier 3 to 5 cities in India with the aim to digitize payments in these cities, which will enhance financial inclusion. We are excited to witness the impact these digital payment solutions will have on the end customers and the merchants alike.” – Marieke Roestenberg, Head of FMO Ventures Program.
Innoviti utilized its Series C funds to design and launch GENIE, its product for mid-market electronics merchants. The product launched in July 2021 helps these merchants fight against online by providing attractive EMI and BNPL schemes to their customers. Within six months GENIE has rapidly grown to driving Rs. 1,000 Cr. of annualized GTV that is targeted to grow to Rs. 7000 Cr. over next twelve months. Innoviti is also working on an installment platform with Visa to democratize access to credit by enabling any bank’s customers to opt for a loan at the time of purchase.
Innoviti’s products provide operational, financial, and marketing benefits to businesses, helping them grow faster with lesser efforts. Based on deep consumer insights, the products are crafted using superior technology that drives higher GTV per point of purchase than anyone else in the market, and a continuously increasing take rate per $ of GTV. This has not only driven a rapid growth trajectory, but also a highly profitable one with gross margins more than 60%.
The funds raised will be used for a) funding working capital for its enterprise business, b) marketing of mid-market products, c) further strengthening of the technology platforms for online and B2B payments and d) tactical acquisitions in the areas of data sciences and marketing technologies.