Bengaluru-based fintech firm Innoviti Payment Solutions on Wednesday said it raised Series C funding, led by Netherland’s entrepreneurial development bank FMO and the San Francisco based venture capital firm Bessemer Venture Partners.
The company declined to disclose the amount raised.
FMO is new, while Bessemer is a returning investor. Innoviti will use the funds for technology and product development across new market segments. It aims to become cash positive by March 2021, according to a statement.
“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… The current funding is a huge endorsement of our strategy and we look forward to achieving our goal of becoming self-sustainable with this funding,” Innoviti CEO Rajeev Agrawal said.
The company has so far raised over $37 million from investors including Catamaran Ventures, SBI-FMO fund, Bessemer Venture Partners and Trifecta Capital, according to VCCEdge data.
The company’s net loss had shrunk to Rs 33.3 crore in the financial year ended March 2019, from Rs 38.2 crore, a year earlier. Revenue rose 69% to Rs 38.3 crore. Innoviti is yet to disclose its earnings for FY19-20.
Innoviti offers enterprises a payments solution through its patented uniPAY Next Technology platform. It was founded in 2002 by Agrawal, who holds an engineering degree and doctorate from IIT-Bombay.
The company has processed over $6.5 billion of annualized offline merchant payment volume, which makes for about 5% of India’s offline merchant volume, according to the statement.
Since it last raised its Series B funds at $18 million in July 2017, the company’s product strategy has translated into a 250% revenue growth over a 180% merchant volume growth, the statement added.
"In a fast-developing economy like India, the use of technology is critical to make MSMEs’ competitive in the marketplace and provide them with efficient and sustainable access to financial services. We are excited about partnering with Innoviti through our recently established Ventures Program,” Jaap Reinking, director of private equity at FMO said.
Innoviti's top competitors in the digital payments technology providers space include Pine Labs. The two clashed over a patent infringement dispute a year ago. Pine Labs last raised funds in January from global payments solution company Mastercard.