VC-backed fintech firm Innoviti raises Series C funding from FMO, others

By Narinder Kapur

  • 10 Jun 2020
Credit: 123RF.com

Innoviti Payment Solutions Pvt. Ltd, which operates an eponymous payments-focussed financial technology firm, has raised funding as part of its Series C round.

The round has been led by Dutch development bank FMO and the US-based Bessemer Venture Partners, Innoviti said in a statement. However, it did not disclose the amount it raised.

VCCircle in February reported that FMO had proposed to invest Rs 35.6 crore (around $5 million) in debt funding.

The Bengaluru-based company will use the funds to expand the scope of its customer-centric payments service by designing different solutions for different market segments. It is also seeking to become cash positive by the end of March next year.

“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,” Rajeev Agarwal, founder at Innoviti, said.

Separately, FMO director for private equity Jaap Reinking said the Dutch development bank was confident of its investment because of its focus on helping small businesses make their payments processes more efficient.

Innoviti was founded in 2002 by Agrawal, who holds a B.Tech degree and PhD from IIT-Bombay. Before becoming an entrepreneur, he had worked with technology firm Sasken Communications in Bengaluru.

The company claims to process over Rs 20,000 crore of payment transactions annually including Rs 1,000 crore of credit across 50,000 point-of-sale terminals every year. Through Smelending.com, it claims to have processed more than 1.5 lakh loans annually for over 30,000 small businesses.

In March last year, the Bengaluru-based company raised Rs 80 crore (around $11.55 million) in a round led by venture debt firm Trifecta Capital. A clutch of non-banking financial companies also put in money in the round, which comprised a combination of debt, venture debt and asset financing, Innoviti said at the time.

In July 2017, it secured $18 million (around Rs 120 crore) in July 2017 in a Series B round from SBI-FMO Fund, Bessemer Venture Partners LP and Catamaran Ventures.