Payments focussed fintech startup Innoviti gets $25 million more

Payments focussed fintech startup Innoviti has closed its Series D round with an additional $25 million funding from investors led by Singapore’s Panthera Growth Partners. This takes the total Series D funding to $45 million, a senior executive said.

Panthera has invested $15 million from its recently announced Fund II, along with new investors including Alumni Ventures, Patni Family Office and existing investors FMO and Bessemer Venture Partners.

Its valuation has increased 3x from its Series C round last year, cofounder and chief executive Rajeev Agrawal said, without disclosing the exact number. The company has so far raised $75 million, including the latest round.

It had previously raised $20 million from investors such as FMO, Trifecta Debt Fund, in a mix of debt and equity. According to Agrawal, the company will use the capital to expand its mid-market product lines in electronics, fashion, and grocery.

It will also utilize the money to build products on top of UPI payment channels, enhance product distribution, and make strategic acquisitions in the marketing technology and data sciences fields. The two-decade-old company provides technology-led payment solutions and point-of-sale terminals for businesses, offline merchants, small retailers, by partnering with banks and digital payment providers.

It helps retailers with billing and customer relationship management (CRM) software solutions. According to Agrawal, more than 20,000 retailers participate in Innoviti's platform, which handles more than 90 million unique customer purchases each year. The company offers grocery, fashion, healthcare, and electronics retailers with category-specific purchase solutions.

“Our company has been growing fast and we are already at 2x the pre-Covid-19 volume when it comes to processing payments. The company currently processes $10 billion worth of payments,” Agrawal said. Currently, its annual revenue run rate stands at $18 million.

“We have been growing at almost 70% CAGR and expect to close the financial year ending March 2023 at $36 million - $38 million,” he added. Agrawal said the company operates on a gross margin of 68%. The enterprise division of the company is already profitable, and it expects to reach total break-even within the current financial year. According to Agrawal, the company will look at an initial public offering (IPO) over the next 24 months.

“Innoviti’s cutting-edge solutions help turn simple payment transactions into powerful purchase tools,” said Shilpa Kulkarni, founder and managing director, Panthera Growth Partners, which has backed companies such as BigBasket, Zivame, Pepperfry, OfBusiness and FreshMenu. It is a $250-million fund. Avendus Capital was the exclusive financial advisor to Innoviti in this transaction.