Valuation multiplies 2.5X as the company approaches profitability
Series D funding, a mix of debt and equity, was carried out by Trifecta Debt Fund, Patni Advisors, and Bessemer Venture Partners. Sanjoy Bhattacharya, the doyen amongst value investors, Bharat Jaisinghani, and a clutch of other individual investors also participated in the same. Innoviti’s valuation has multiplied 2.5X from its Series C round closed a few months back.
Innoviti enables businesses to collaborate on payment transactions and turn them into purchase tools that are reliable, convenient and urge a consumer to buy more by increasing their purchasing power. Merchants, banks and brands come together on Innoviti’s platforms to create such experiences. They not only gain new loyal customers but also increase their share of wallet, driving more customers, more sales and more profits than possible otherwise.
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.
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 online by providing attractive EMI and BNPL schemes to their customers. Within six months GENIE has rapidly grown to drive Rs. 1,000 Cr. of annualized GTV that is targeted to grow to Rs. 7000 Cr. over the next twelve months. The company is in the process of designing products for the automotive and jewellery industries in the meanwhile. Innoviti is also working on an instalment 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, Innoviti’s products are crafted using superior technology that has translated into 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 in excess of 70%. The company’s enterprise business has been EBITDA positive since October 2020, and the combined business has turned profitable in December 2021. The company expects to turn cash positive over the next 12 months.
“Innoviti desires to become the purchase partner to every Indian. Helping them enhance their standard of living by improving the purchasing power of every Rupee they earn. 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 improving the purchasing power of their consumer.
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 have 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 a couple of years.” – said Mr. Rajeev Agrawal, CEO, Innoviti.
Innoviti is looking at raising Rs. 400 Cr. in primary funding in Series D to fuel its growth with a plan for a listing in the next 2 to 3 years. Other marquee investors are expected to join in the subsequent closings over the next few weeks. 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 area of data sciences and marketing technologies.
