Innoviti Payment Solutions Pvt. Ltd, which operates an eponymous payments-focused financial technology firm, on Thursday said it has raised an additional Rs 75 crore ($9.6 million) as part of its Series D funding round from existing investor FMO, the development finance institution of the Netherlands.
The fintech company will raise another Rs 125 crore in the next few weeks towards the final closing of its Series D round at Rs 280 crore, it said in a statement.
Innoviti will use the latest capital to strengthen its technology and for acquisitions in the field of data science and marketing technologies. A part of the funds will also be used for working capital needs and marketing its products.
Rajeev Agrawal, CEO, Innoviti, said in the statement that the company aims to become a sustainable business with the help of the Series D funding round and list on the exchanges over the next couple of years.
In January, the company raised Rs 80 crore as part of this round from Trifecta Debt Fund, Patni Advisors, and Bessemer Venture Partners in a mix of debt and equity. A clutch of individuals had also participated in the funding round then. VCCircle first reported about the close of the first leg of its Series D round in January.
Launched in 2002, the firm provides technology-led payment solutions and point-of-sale terminals for businesses, offline merchants, small retailers, by partnering with banks and digital payment providers. It also equips retailers with billing and customer relationship management (CRM) software solutions to help merchants and retailers.
The company claims to be processing over Rs 75,000 crore of annualized purchase volume. Last year in July, it launched its product for mid-market electronics merchants called GENIE. Within six months, the product is driving Rs 1,000 crore of annualized gross transaction value (GTV) that is targeted to grow to Rs 7,000 crore over the next one year, it said.
The company is also working with Visa to set up an instalment platform to help democratize access to credit.
"Innoviti will foray into tier 3 to 5 cities in India with the aim to digitize payments in these cities, which will enhance financial inclusion. We are excited to witness the impact these digital payment solutions will have on the end customers and the merchants alike," said Marieke Roestenberg, Head of FMO Ventures Program.
Fintech startups have continued to attract investor interest in the last several years. In a recent fintech deal, Fatakpay Digital Pvt. Ltd, co-founded by former principal at KKR Amit Lodha - primarily offering virtual credit cards, and other financial services - pocketed an undisclosed amount in funding from a clutch of angel investors.
India was the third largest fintech market in the world at $31 billion in 2021 after the US and China, according to a report by Mumbai-based VC firm BLinC Investment Management. The fintech sector is expected to grow with a compound annual growth rate (CAGR) of 22% in the next five years, the report added.