Innoviti Ties-Up Rs. 80 Cr. through innovative debt instruments to expand its rapidly growing business. - Innoviti

Innoviti Ties-Up Rs. 80 Cr. through innovative debt instruments to expand its rapidly growing business.

15 March 2019

Designed to de-risk payments at POS from local GPRS and 4G Network Problems
  • Innoviti has tied-up Rs. 80 Cr. (approximately USD 12M) through a combination of debt, venture debt and asset financing to further fuel its rapidly growing business. The current round was led by Trifecta Capital and a clutch of other NBFCs.
  • This fund raise follows on the heels of previous rounds of Series A (June 2015) and Series B (July 2017) equity financing, where Innoviti had raised US$23M from existing marquee investors including the Singapore-based SBI FMO Emerging Asia Financial Sector Fund (the “SBI-FMO Fund” jointly setup by SBI Holdings Group of Japan and FMO of Netherlands), Bessemer Venture Partners and Catamaran.
  • Innoviti has grown 2.5X in volumes since last round of funding, clocking USD 5 Bn of annual processing volume. Its throughput per terminal at USD 9000 per month is 3X of national average and 2X of any other payment solution provider, putting Innoviti in a leadership position on processing throughput/terminal/month. This is a vindication of Innoviti’s obsessive focus on delivering transaction processing reliability and deep integration with client business operations, through high-quality payment software and automated service processes.
  • Innoviti’s Enterprise business, where it powers payments for large enterprises through its advanced patented uniPAY Next technology platform, has turned cash positive in Jan 2019. The current debt raise would be used to fuel this further. The company is also now linking its payments and lending platform to put together solutions for supply chain cash flow management.
  • The current round of Debt funding will support Innoviti’s sustained focus on driving not just more transactions per terminal, but also qualitatively richer transactions per terminal. Specific uses will include business expansion needs like purchase of infrastructure – including servers, terminals and other product development capital expenses.

Bangalore, March 15th2019: Leading payments company, Innoviti Payment Solutions today announced financing of Rs. 80 Crores (~ USD 12 million) to further its vision of digitally organizing the flow of money for businesses across the retail supply chain. The current round was led by Trifecta Capital and a clutch of other NBFCs.

Less than 10% of India’s retail payments are currently digital, creating a market opportunity of more than $500 Bn annually.  Relentless growth in payments has however brought forth the need for dramatic improvements in the speed and reliability of payments platforms.  At the same time the opportunity that payment pipes provide to cloud enable offline retail and then deliver services through these pipes is large.

Innoviti’s goal is to lay the best possible pipes, deeply integrate them with merchant operations to enrich the data flowing through the pipes and then create use cases from insights gathered from the data to deliver payment, lending and marketing services to the merchants and their consumers.

This obsessive focus on assuring payment transaction speed and reliability for its customer base has helped Innoviti to more than double its revenue run-rate in past 9 months while increasing gross margin to 70+%, the highest in this industry. With annualized payment processing of 5B$, it now processes nearly 5% of all offline POS-based digital transaction volumes in India. At nearly Rs.6 Lac transaction volume per terminal, Innoviti terminals typically process nearly 3X of national average.

Innoviti’s payment platforms serve a marquee client base of merchants including Reliance Retail, Titan, Landmark Group, INOX, Indigo, Walmart and several others. Leading banks such as HDFC, ICICI, Axis, SBI, Standard Chartered, Kotak and Citibank use the platform to access customers for processing their payments and distributing to them loans.

Quotes:

“A rapidly growing Indian economy with fledgling infrastructure needs a different approach to delivery of payment solutions. An approach that first focusses on making every transaction happen, and happen fast. Innoviti with its deep technology expertise has built possibly the best payments platform in the country for doing this. Its throughput per terminal per month at USD 9000, 3X of national average, is testimony to this. With our Enterprise business turning cash positive we have blended our fund raise strategy with debt, that we believe will help in delivering superior returns to all stakeholders“– said Mr. Rajeev Agrawal, CEO, Innoviti.”– said Mr. Rajeev Agrawal, CEO, Innoviti. “We have been impressed with the thoughtfulness and patience that Innoviti has brought to the enterprise payments business. It is a good example of a company which has kept ears close to the customer and led by product innovation while being capital efficient. We are very excited to partner with Rajeev in this phase of growth where our structured debt solution can help the company get to its goals faster and in a more capital friendly manner.”– said Mr. Aakash Goel, Partner, Trifecta Capital.

About Trifecta.

Trifecta Capital works closely with companies to create customized venture debt financing solutions to cater to various use cases including working capital financing, capex funding, acquisition financing and special situations. Trifecta Capital also leverages its’ investor network to create meaningful collaboration opportunities for its portfolio companies. Investing actively from Fund I and II, it is the largest Venture Debt Fund in the country. Trifecta Capital is backed by India’s leading Banks, Insurance Companies, Endowments, DFIs and Family Offices. Since 2015, it has supported over forty companies including three Unicorns. Investee companies include PaperBoat, Rivigo, Big Basket, Urban Ladder, UrbanClap, Box8, Livspace, Cure.Fit, CarDekho, Pharmeasy, IdeaForge and several other market leading companies.

For more information, please visit http://www.trifectacapital.in

About Innoviti Payment Solutions Pvt. Ltd:

Innoviti Payment Solutions runs a payment platform that has a unique ability to add intelligence to traditional payment channels, enhancing their value. Merchants, brands and financial service providers use these intelligent payment channels to reduce cost and drive sales of their products. Innoviti processes over Rs. 40,000 Cr. of payment transactions, about 6% of all offline merchant payment transactions in India. This also includes Rs. 1.500 Cr. of transactions involving distribution of loans to consumers and small businesses. The most capital efficient company in this space, Innoviti processes more volume for every $ raised than any other payments company. The company is backed by marquee investors such as Catamaran Ventures, SBI Venture Capital and Bessemer Venture Partners.

For more information, please visit – http://www.innoviti.com

Media Contact:

Sarath Chandra Nerella
Associate Vice President – Marketing Communications
sarath@innoviti.com
Innoviti Payment Solutions Pvt. Ltd.

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    Credit card EMI uses your credit card limit to convert your purchase into installments. Suppose you make a purchase for Rs. 9,000 on your credit card and while buying select the credit card EMI option with a tenure of 3 months, then the bank instantly converts your purchase to three installments of Rs. 3,000. In the next credit card cycle, instead of paying Rs. 9000, you will need to pay only Rs. 3,000, and continue paying this for 3 months. A nominal interest or processing fee may be charged depending upon the various schemes running at the merchant.

    If you don't own a credit card and would still prefer paying in instalments, you can use your Debit card to make select purchases on EMI.  Your debit card bank may have qualified you, you can check the bank on the same by sending the following SME message to your bank:

     

    HDFC (Min value is 5 K)

    SMS MYHDFC to 5676712 from your

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    give a missed call to 9643 22 22 22

     

    AXIS (Min value is 5 K)

    SMS DCEMI<Space>XXXX (last 4 digits

    of your debit card number) to 5616100

     

    Federal (Min value is 5 K)

    DC<space>EMI to 5676762 / 9008915353

    or missed call to 7812900900

     

    Kotak (Min value is 8K)

    SMS CDL<space><last 4 digits of your

    Debit Card No> to 5676788

     

    ICICI (Min value is 5 K)

    SMS DCEMI<space><last 4 digits of

    Debit Card number> to 5676766

     

    While making the payment, notify the store executive to swipe your debit card transaction in the EMI mode and select a preferred tenure. The transaction will get approved on your bank as per your qualification and converted into EMI for the number of months selected during the transaction.

    Buy Now Pay Later (BNPL) is like using a credit card or getting a loan and repaying in EMI. The only difference being that it is for an ultra-short duration of 15 days to 60 days.

    Merchant will get the money the next working day from the bank.

    Interest costs depend from case to case. For example, in: Zero cost EMI - Customer doesn't pay the interest cost Bank EMI - Customer pays 12 to 15% interest cost depending upon the bank. Buy now pay later scheme (15 days) - Customer pays around 1.16% interest, again depending upon the banks. Buy now pay later (30 days,60 days and 90 days) - Customer pays 2.33%, again depending upon the banks.

    Processing fee is the amount charged by a credit/ debit card issuer to process your customers loan booking. For example, HDFC Bank charges Rs. 199 as processing fee for both CC and DC EMIs.

    IMEI validation is done by entering the IMEI number into the Innoviti terminal which then gets validated by the brand for an authentic product being sold.

    IMEI validation is done for Brand EMI transactions.

    The offers could be on any brand, product, bank card, being offered on any specific dates or any specific SKUs

    SKU promotions start with the cashier scanning SKU, IMEI/ Serial number from the billing POS and entering the amount in the billing POS and then transacting under the "Brand EMI" tender mode.

    As SKU comes directly from the billing POS via scan, it reduces the errors and manual effort of selection to re-enter/select again from the EDC.

    Joint promotions are offers provided to consumers in which two or more parties are bearing the cost of the offer. It is a highly efficient mechanism to reduce the cost of marketing. Small merchants can benefit by getting their name associated with large banks and brands.

    Innoviti has used payments technology in unconventional ways to bring merchants, banks, and brands together and enable them to run joint promotions for their common consumers.
    Innoviti’s uniPAY Next and GENIE products can run instant cashbacks, EMI, upgrade offers and others with two or more parties bearing the cost of it.

    The MDR, or Merchant Discount Rate, is a fee paid by the merchant to its bank for accepting payments card payments. This is typically calculated as a percentage of the transaction value undertaken through credit/ debit cards.

    Merchants can negotiate with banks for better MDR rates. With greater scale, merchants enjoy better negotiation power. You can also reduce MDR using Innoviti’s sophisticated multi-bank routing technology in uniPAY Next.

    Innoviti's uniPAYNEXT multi-bank routing technology automatically routes every card swipe to the bank that will charge the lowest MDR for it.

    Innoviti’s uniPAYNext technology uses an advanced #LookAhead technology to instantly scan the store and bank networks and identifies the best route from the store to the bank to improve transaction reliability. It optimizes speed, cost & reliability based on merchant pre-set rules to select the bank.

    Mismatches between a merchant's daily sales bank card settlements creates unnecessary manual reconciliation work. Innoviti's uniPAYNEXT technology digitally adds the approval code and approving bank name to the billing system enabling automatic reconciliation.

    The reports can be seen on SPARCS, uniPAYNEXT's reporting portal. This comprises of some very useful information like daily settlement receivables from each acquiring bank, store sales by different card issuers or regions or payment tender modes opening new possibilities for joint marketing programmes.

    UPI stands for Unified Payment Interface (UPI), a technology created by National Payments Corporation of India (NPCI). It allows transfer of money from one bank account to another instantly via one's mobile phone. Innoviti supports UPI payment via any UPI app such as Paytm, GPay, WhatsApp Pay, PhonePe through its terminals. To know more, click here.

    You need a Sodexo card issued by your employer. You can use your Sodexo card to pay for your food & grocery purchase on any Innoviti terminal in your F&G store. To know more, click here.

    Innoviti supports all Visa, Master, Rupay cards, UPI, Sodexo, other meal cards, EMI, Buy Now Pay Later Plans and loyalty point redemption through debit cards of banks supported by Loyalty Rewardz.

    How can I get my shop name added to Innoviti’s advertisements on Google?
    Once you sign-up with Innoviti and your GENIE app is installed, your name will automatically get added to the advertisements. It takes between 4 to 5 days for the name to start appearing.
    How can I get my shop name added to Innoviti’s advertisements in banks?
    Once you sign-up with Innoviti and your GENIE app is installed, your name will automatically get added to the advertisements. It takes between 4 to 5 days for the name to start appearing.
    How does GENIE coupon work? On which banks is it applicable?
    GENIE coupon is an instant discount offered by Innoviti to every consumer whose payment is done on Innoviti’s mobile app by the merchant. Customers need to enter their mobile number in the app, they will instantly receive an OTP through SMS/ WhatsApp, entry of this OTP applies the surprise instant discount on the purchase value immediately.
    Example: If your purchase value was Rs. 10,000, and the coupon value is Rs. 500, then your charge-slip will be approved for Rs. 9,500. You save instantly. The merchant gets the full money.
    It is applicable to credit/ debit card holders of 100+ banks in India.
    Does wallet work on refurbished products?
    Yes. GENIE’s EMI wallet can be used to provide zero-cost EMI on refurbished, second- hand and upgrade plans.
    How can I get access to customers qualified for credit by banks?
    Banks work with aggregators to provide access to these customers. Innoviti is a leading aggregator which can provide you with a terminal that will connect to the bank and provide you access to these cardholders.
    In addition, Innoviti in coordination with the bank will promote your store to all the bank’s customers who are pre-qualified.

    Brand EMIs are joint promotion schemes used by merchants, banks, and brands to incentivize a consumer to buy a higher end-product than what they can afford. The purchase is converted into EMI instantly by the bank, with the interest cost being borne by the product brand.

    Innoviti has partnered with 100+ brands including Apple, Samsung, Vivo, Oppo to extend 1000s of such schemes.

    You need to be pre-qualified by your credit, debit card bank to be eligible for Brand EMI. The bank will typically look at your credit card and savings account history to qualify you.

    Innoviti’s technology instantly checks with the bank if you are qualified to approve your Brand EMI transaction.

    Does wallet work on unbranded products?
    Yes. GENIE’s EMI wallet can be used to provide zero-cost EMI on any unbranded electronics product like headphones, power banks, speakers, etc.
    How does BEAM work?
    BEAM (Brand EMI Acceleration Mission) offer gives merchants the option to get sponsored by one of the leading mobile brands that they represent. Innoviti has tie-ups with brands like Samsung, Oppo, Vivo and Xiaomi. Using BEAM, merchants get 1% extra margins on the sponsored brands and 0.5% extra margins on the rest of the brands