Payment gateway and point of sale (PoS) provider Innoviti has successfully raised Rs 70 crore ($8.5 million) in a combination of equity and debt in the second tranche of its Series E funding round. This latest investment was led by Random Walk Solutions, with significant participation from existing investors, including Bessemer Venture Partners USA, Patni Family Office India, and Alumni Ventures.
The Bengaluru-based company had earlier raised the first tranche of its Series E round in April of this year. With the completion of this funding round, Innoviti is now gearing up for its initial public offering (IPO), targeted within the next 12 months.
Innoviti specializes in providing payment gateway solutions and PoS devices to merchants, enabling seamless card-based payments. The company boasts a portfolio of high-profile clients, including Reliance, Tanishq, and Shoppers Stop.
According to Innoviti, its enterprise PoS solution, uniPAYNext, is currently operating with an EBITDA margin of 20% and is growing at an annualized rate of 23%. In contrast, its electronics EMI solution, GENIEPlus, is experiencing rapid growth at 80% annually, though it is currently operating at an EBITDA margin of -18%. The company anticipates that GENIEPlus will reach breakeven by the end of the current fiscal year (FY25).
Overall, Innoviti reports an annualized run rate of Rs 160 crore with an EBITDA of Rs -8 crore. The company aims to achieve operating profitability within the next few quarters.
While Innoviti has yet to file its audited financials for FY24, it reported a 48% increase in operating revenue, reaching Rs 110.2 crore in FY23. The company’s ARR and current EBITDA suggest a financial turnaround, especially considering the Rs 86.5 crore loss recorded in FY23. Service fees from its payment facilitation services were the primary source of revenue for the company in FY23.
In a significant development earlier this year, Innoviti received final authorization from the Reserve Bank of India (RBI) to operate as an online payment aggregator, further strengthening its position in the payments industry.
