BENGALURU, India, June 2, 2021 / PRNewswire / – Companies Achieve Dominant 76% Market Share with Operating Profits Reaching 25%
- Innoviti, one of the leading providers of smart payment solutions announced that during the year 2020-2021, its GTV crossed 10 billion dollars with a net ARR doubling to $ 18 million. The company’s business activity, which provides solutions to major corporate merchants in the Food, Lifestyle, Healthcare and Electronics categories, boosted its operating margins to 25%, with the company now holding a share of dominant market of 76%. The company’s revenue CAGR rose from 54% to 74%, the highest in the offline payments industry.
- Innoviti had lifted a C Series in 2020 to continue its differentiated strategy of serving the retail market through category and segment specific products. The strong performance across all parameters is the result of this strategy, as catch rates, GTV and margins all increase to 3 times the market rate.
- Innoviti uses payment technology in unconventional ways to help businesses get more value from transactions than anyone else. By bringing together banks, brands and merchants on a common platform, Innoviti helps each company access 3 times more consumers at 1/3rd cost, accelerating sales with unmatched efficiency.
- The increase in revenues is explained by a) the migration of several corporate clients to Innoviti’s superior digital technology as the pandemic highlights the importance of quality digital solutions, beyond simple payment terminals and QR stickers, b) the launch of new services such as BNPL, EMI and product related promotions for brands, helping businesses discover new and unique ways to attract and retain customers, and c) the launch of new products for small traders.
- The rationalization of costs was brought about by significant investments in the establishment of a support structure and distributed supply chain. The company has set up warehouses pan-India, automated the supply chain and implemented predictive detection of failures and support needs using advanced machine learning algorithms. This not only translated into a better customer experience, but also gross margins exceeding 70%, the highest in the industry.
- The company launched GENIE, a smart marketing app for local mobile resellers to help them fight back online by bringing them the same technology that online merchants use to attract consumers. This product not only supports conventional branded EMI programs, but also unique and exclusive EMI and cashback programs that are not even available online. Originally launched in Mysore, the product quickly gained market share, crossing 30% within 6 weeks of launch. Launched in April 2021 in Bangalore, the product gained 5% market share in 4 weeks, before the lockdown prevented further deployment.
- The company plans to onboard 100,000 local mobile phone resellers over the next three months to capture more than 50% of the market share in 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 overcome the current economic challenges faced by the pandemic.
“Digitization provides an equal opportunity for all businesses, large and small, to access consumers. This has resulted in increased competition for all businesses. However, unequal access to digital technology for small businesses has disproportionately increased competition. Our goal is to level these rules of the game by using payment technology as a distribution channel for digital services.
The problem we are solving today for small traders is access to consumers. They face stiff competition from modern commerce and electronic commerce. Although the industry is focused on providing loans to these traders, we believe that a much bigger issue for them is sales. If they can’t liquidate their inventory, how will the loans help them? Granting loans in such situations is likely to fuel defaults.
The traditional approach to creating technology solutions for small businesses has been prescriptive, bundling a lot of software into a terminal or computer, which leaves marketers in awe. We’ve taken an approach to designing tools with exceptional usability that solve one problem at a time – the problem today is getting more walk-ins and converting more walk-ins. Every small trader is an entrepreneur and has their own way of growing their business. To unleash that creativity, we’ve also included features that allow them to digitally create and promote their own unique programs to attract and retain customers.
Over the next 2 years, we plan to further accelerate our growth by expanding the GTV to $ 30 billion, driving an ARR of $ 100 million with operating profits reaching 45 +%. The company plans to go public in 2023-24, on local stock markets. ” – said Mr. Rajeev agrawal, CEO, Innoviti.
About Innoviti Payment Solutions Pvt. Ltd., Bangalore, India.
Innoviti Payment Solutions Pvt. Ltd. was a pioneer in the use of payment technology to help businesses derive better value from retail transactions than possible otherwise. The company processes more than $ 10 billion in merchant payments from more than 1,000 cities with a volume throughput per installation that is twice the country average. Bessemer Venture Partners, United States, FMO, Netherlands and Catamaran Ventures, India investors in the business. The company has several patents filed, two of which have been awarded. Innoviti is the winner of Mastercard’s Innovation Wizards Award, Reliance’s Most Promising Growth Consumer Finance Award and Deloitte’s Fastest Growing Business in Asia reward in 2020. Innoviti is the only Indian SaaS payment company to have received the SOC3 Seal of Excellence for its adherence to the principles of trust in terms of confidentiality, security, confidentiality, availability and transaction processing.
SOURCE Payment Solutions Innoviti Pvt. Ltd.