The current round has been led by Trifecta Debt Fund, Patni Advisors and Bessemer Venture Partners with the participation of notable individual investors.

Innoviti plans to raise 400 Cr INR (approximately $ 53 million) in primary Series D funding over the next few months before filing for an IPO in 2024-25

Merchant-focused fintech startup claims to have processed over 527 million transactions worth $ 22 billion and installed over 80,000 PoS terminals to date

Bengaluru-based digital payment solutions start-up Innoviti has raised INR 80 Cr (around $ 10.7 million) in equity and debt as part of an ongoing Series D round. Led by Trifecta Debt Fund, Patni Advisors and Bessemer Venture Partners, the cycle saw the participation of notable individual investors, including Sanjoy Bhattacharya and Bharat Jaisinghani of Polycab.

While the startup plans to go public in the next 2-3 years, Innoviti plans to raise 400 Cr INR (approximately $ 53 million) in Series D primary funding. Subsequent tranches will close in the coming months.

The funds raised will be used to finance his company’s working capital, marketing and technology strengthening. Innoviti also plans to acquire data science and martech businesses simultaneously.

Founded in 2002, the startup deploys point of sale (PoS) terminals and processes card payments for merchants. It claims to have turned its core business of processing card payments for organized retailers into positive cash. Innoviti claims to process over 75,000 INR Cr (approximately $ 10 billion) in purchasing volume per year and holds 76% of the market share in the enterprise category.

According to its website, the startup claims to have processed more than 527 million transactions worth $ 22 billion and installed more than 80,000 PoS terminals to date.

Prior to that, Innoviti raised an undisclosed amount as part of the Series C, a $ 5 million (INR 35.6 Cr) FMO debt financing in February 2020 and $ 11.5 million (INR 80 Cr) Debt financing of Trifecta Capital and a few non-bank financial companies (NBFC) in March 2019.

After its Series C tour, Innoviti had launched an enterprise solution for local mobile merchants GENIE. The product was launched in July 2021 and in just six months it had a gross transaction volume (GTV) of 1000 INR Cr (approx. $ 134 million) with the goal of growing by 7000 INR Cr (approx. $ 935 million) by December 2022.

Innoviti is also working on the design of specific PoS products for the automotive and jewelry industries and a lending-focused platform in collaboration with Visa.

The fintech startup is competing with the likes of Pine Labs supported by SBI and claims to be very profitable with gross margins of over 70%. The corporate activities of Innoviti alone turned positive in terms of EBITDA in October 2020 and the combined activities became profitable in December 2021.

The startup expects to generate positive liquidity over the next 12 months and file an IPO application in 2024-25.

According to media reports, Innoviti’s competitor, Pine Labs, is considering a public listing of $ 1 billion and is expected to be listed on the U.S. NASDAQ stock exchange this year. He has already engaged Morgan Stanley and Goldman Sachs as advisers for its listing.