Payment gateway and point-of-sale (PoS) provider Innoviti has successfully closed the second tranche of its Series E funding, raising ₹70 crore ($8.5 million) in a mix of equity and debt. The round was led by Random Walk Solutions, with participation from existing investors, including Bessemer Venture Partners USA, Patni Family Office India, and Alumni Ventures.
This funding follows the first tranche of the Series E round, which Innoviti completed in April this year. With the closure of Series E, the Bengaluru-based company is setting its sights on an initial public offering (IPO) within the next 12 months.
Innoviti is a prominent provider of payment gateway and PoS devices, catering to major clients like Reliance, Tanishq, and Shoppers Stop. The company’s enterprise PoS solution, uniPAYNext, is currently operating with an EBITDA of 20% and is experiencing a 23% annual growth rate. Meanwhile, Innoviti’s electronics EMI solution, GENIEPlus, is growing at an impressive 80% annually, though it is currently operating with a -18% EBITDA. However, GENIEPlus is expected to reach breakeven by the end of the current fiscal year (FY25).
Overall, Innoviti reports an annualized run-rate of ₹160 crore, with an EBITDA of ₹-8 crore. The company aims to achieve operational profitability within the next few quarters. Although Innoviti has not yet filed audited financials for FY24, its operating revenue grew by 48% to ₹110.2 crore in FY23. This growth indicates a significant turnaround, as the company reported a loss of ₹86.5 crore in FY23. The primary source of Innoviti’s operating revenue in FY23 was service fees charged for its payment facilitation services.
In addition to its financial achievements, Innoviti received final authorization from the Reserve Bank of India (RBI) earlier this year to operate as an online payment aggregator. This authorization further strengthens the company’s position in the competitive fintech market as it prepares for its upcoming IPO.
