Innoviti’s GTV Crosses $10 Bn, Net ARR Doubles to $18 Mn - Innoviti

Innoviti’s GTV Crosses $10 Bn, Net ARR Doubles to $18 Mn

2 June 2021

Enterprise business achieves dominant market share of 76% with operating profits expanding to 25%

  • Innoviti, a leading provider of smart payment solutions announced that in the year 2020-21 its GTV has crossed $10 Bn with net ARR doubling to $18 Mn. The company’s Enterprise business, which provides solutions to leading enterprise merchants in Food, Lifestyle, Healthcare and Electronics categories strengthened its operating margins to 25% with the business now commanding a dominant 76% market share. The company’s revenue CAGR has accelerated from 54% to 74%, highest in the offline payments industry.

  • Innoviti had raised a Series C in 2020 to further its differentiated strategy of servicing the retail market through category and segment specific products. The strong performance on all parameters is the outcome of this strategy as take rates, GTV and margins all expand at 3X the market rate.

  • Innoviti uses payment technology in unconventional ways to help businesses extract better value from transactions than anyone else. By bringing banks, brands, and merchants on to a common platform, Innoviti helps each business access 3X more consumers at 1/3rd the cost, accelerating sales with unmatched efficiencies.

  • The revenue increase has come on the back of a) several enterprise customers migrating to Innoviti’s superior digital technology as the pandemic brings fore the importance of quality digital solutions, beyond mere payment terminals and QR stickers, b) launch of new services such as BNPL, EMI and product linked promotions for brands, helping businesses discover new and unique ways of attracting and retaining customers, and c) launch of new products for small merchants.

  • Cost rationalization has been brought about through deep investments in setting up of a distributed support and supply chain structure. The company has setup warehouses pan-India, automated the supply chain, and put in place predictive detection of failures and support needs using advanced machine learning algorithms. This has not only resulted in a better customer experience, but also in gross margins crossing 70%, the highest in the industry.

  • The company launched GENIE, a smart marketing application for local mobile dealers to help them fight back with online by bringing to them the same technology as used by online merchants to attract consumers. This product not only supports conventional Brand EMI schemes, but also unique and exclusive EMI and cashback schemes not even available online.  Launched initially in Mysore, the product rapidly gained market share, crossing 30% within 6 weeks of launch.  Launched in April 2021 in Bangalore, the product gained 5% share within 4 weeks, before the lockdown prevented further roll-out.

  • The company has plans to onboard 100,000 local mobile dealers in the next three months to capture more than 50% market share of this space which is struggling with the lack of quality sales growth tools.  The company is also launching short-term BNPL products in the Fashion and Food category to help consumers tide over the current economic challenges faced due to the pandemic.

Quote:

“Digitization provides an equal opportunity for every business, whether large or small, to access consumers.  This has resulted in increased competition for all businesses.  However, unequal access to digital technology for small businesses has increased competition for them disproportionately.  Our aim is to level this playing field using payment technology as a channel to distribute digital services.

The problem we are solving today for small merchants is one of access to consumers.  They are facing stiff competition from modern trade and e-commerce.  While the industry focus has been on providing loans to these merchants, we believe a much larger problem for them is sales. If they cannot liquidate their inventory, how will loans help them? Giving loans in such situations is likely to fuel defaults.

The traditional approach to creating technology solutions for small businesses has been prescriptive, bundling lots of software into a terminal or computer that leaves the merchants flummoxed. We have taken an approach of designing tools with exceptional usability that solve one problem at a time – today’s problem being getting more walk-ins and converting more walk-ins.  Each small merchant is an entrepreneur and has their own unique way of growing their business.  To unleash this creativity, we have also included features that enable them to digitally create and advertise their own unique schemes to attract and retain customers.

In the next 2 years we are looking at further accelerating our growth by expanding the GTV to $ 30 Bn, driving an ARR of $100 Mn with operating profits expanding to 45+%.  The company is planning for an IPO in 2023-24, in the local stock markets.” – said Mr. Rajeev Agrawal, CEO, Innoviti.

About Innoviti Payment Solutions Pvt. Ltd., Bangalore, India.

https://www.innoviti.com

Innoviti Payment Solutions Pvt. Ltd. has been a pioneer in the use of technology to add intelligence to payment transactions, helping merchants, banks and brands utilize the full power of digital payments to drive business growth. The company processes over 6.5B$ of offline merchant payments (~5% of India’s offline merchant payments volume as per RBI data), from over 1000+ cities with a volume throughput per installation that is 2X of the country’s average. Catamaran Ventures, SBI Capital, Bessemer Ventures and FMO are investors in the company. The company has several patents filed for with two awarded. Innoviti is the winner of Mastercard’s Innovation Wizards Award for its instant onboarding innovation, and Reliance’s Most Promising Growth Consumer Finance Award for its #KuchBhiOnEMI innovation in 2019.

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

    Bank registered mobile number, or

    To check your pre-approved eligible limit

    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