Enterprise payments solution provider Innoviti Payment Solutions Pvt. Ltd. has raised Series C funding led by Netherlands-based FMO: Entrepreneurial Development Bank, Netherlands and US-based venture capital firm Bessemer Venture Partners, USA.
The funds raised will be used for crafting new consumer-centric solutions for new market segments, while building distribution models that can support these solutions at scale, the company said. With this funding, Innoviti also aims to become cash-flow positive by March 2021.
“Digital payments can do far more for businesses than move money. The usefulness of vanilla terminals and QR stickers is limited as businesses demand more from payment solution providers, more intelligence, more reliability, and more savings. A key differentiator for us has been developing sophisticated technology and delivering it through simple, exceptionally crafted payment experiences," said Rajeev Agrawal, CEO, Innoviti.
Founded in 2002, Innoviti Payment Solutions Pvt. Ltd. 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 also equips retailers with billing and CRM software solutions to help merchants and retailers, across offline segments drive sales, cut operational costs and target relevant customers better.
“Innoviti has been using payments technology to find new and unique ways of helping small businesses grow efficiently. In a fast-developing economy like India, use of technology is critical to make MSME’s competitive in the marketplace and provide them with efficient and sustainable access to financial services," said Jaap Reinking, director private equity at FMO.
The company claims to process over $6.5 billion in transaction payment value, on an annual basis.
“We are excited to continue to back Innoviti given their leadership and innovations on payment software platforms for merchants and MSME's." added Vishal Gupta, managing director, Bessemer Venture Partners.
In 2017, Bengaluru-based Innoviti had raised $18 million ( ₹120 crore) as a part of its Series B funding round led by the SBI-FMO Fund, Bessemer Venture Partners LP and existing investor Catamaran Ventures.
The company had also raised ₹80 crore through a combination of debt, venture debt, and asset financing in March 2019, led by Trifecta Capital and a clutch of other NBFCs.
Digital payments in India continued to be impacted during the covid-19 induced lockdown, with payment firms reporting a 40% drop in transaction volumes. Further, digital payments at offline stores were most affected, as stores continued to be shut.
With businesses resuming operations in Unlock 1.0, digital payment providers are actively looking at offline stores and kiranas to equip them with payment solutions, to reduce the dependency on cash, and curb spread of coronavirus through offering ‘contactless’ payment solutions.