Indian Fintech Soonicorn Innoviti Secures $4M Ahead of IPO

Rajeev Agrawal, Innoviti Founder & CEO

IPO-bound fintech soonicorn Innoviti Technologies has raised INR 35 Cr (about $4 million) in a fresh funding round from existing shareholders, including angel investor and Ola Electric backer Ashutosh Joshi and VC firm Bessemer Venture Partners.

The company’s board passed a special resolution to allot 6,95,871 Series M compulsorily convertible preference shares (Series M CCPS) at a face value of INR 11 each and a premium of INR 492.93 per share to raise the sum, as per its regulatory filings accessed by Inc42.

Following the board’s approval, the digital payments solutions company raised the funding in two tranches.

Joshi led the round with INR 20 Cr investment, Devi Construction LLP contributed INR 5 Cr while Bessemer invested INR 3.4 Cr in the fintech company.

The latest fundraise appears to be part of an ongoing round. In a separate filing with the Registrar of Companies (RoC), Innoviti said that its board approved the company’s proposal on January 21 to raise up to INR 77.88 Cr (about $9 Mn) from existing shareholders through issuance of 15,45,513 Series M CCPS at an issue price of INR 503.93 each.

The startup said it plans to raise fresh capital to drive its business growth. 

“This investment is a continuation of the funding round we did last year, where we raised $6.5 million. The fresh capital will primarily be used to clear existing debt as we prepare for an IPO in the next four quarters,” said Innoviti cofounder and CEO Rajeev Agrawal.

The development comes close on the heels of reports that the startup is gearing up for its initial public offering (IPO) with plans to list on the bourses as soon as in the fiscal year 2025-26 (FY26).

In August 2024, reports surfaced that Innvoti was planning to float an IPO in the next 12 months. However, earlier this year, the company’s founder and CEO Rajeev Agrawal said the company aims to achieve profitability in the next two quarters and has pushed its IPO timeline.

“The company [Innoviti] is planning for operating profitability within the next two quarters, and has initiated IPO planning with an aim to list in the next 12 months,” he said then.

In the run up to its IPO, Innoviti Technologies roped in fintech veteran Nish Kotecha on its advisory board to advise the company on building new consumer payment solutions and guide its IPO strategy. 

Founded in 2002 by Agrawal and Amrita Malik, the company enables merchants to accept payments and integrate real-time sales data into critical business processes. It claims to process over INR 80,000 Cr of purchase volume annually from across 2,000 Indian cities and over 20,000 merchants. 

In March last year, it secured an online payment aggregator (PA) licence from the Reserve Bank of India (RBI) to operate its PA ‘Innoviti Link’. 

In August 2024, Innoviti announced the close of its Series E funding round at INR 70 Cr. Overall, it has raised over $100 Mn in funding to date and counts Bessemer Venture Partners, FMO, Catamaran Ventures, among others, as its investors.

Innoviti Technologies is among the growing list of Indian startups stitching up plans for an IPO. India witnessed a boom in new-age tech IPOs last year with 13 startups, including Swiggy, Ola Electric, Go Digit General Insurance, Awfis, MobiKwik, BlackBuck, among others, going public.

The startup IPO wave is expected to continue this year, with more than 20 new-age tech startups such as OfBusiness, Ather Energy, boAt, Physics Wallah and Zepto, preparing to go public in 2025.

The ongoing IPO frenzy is also driving the trend of ‘reverse flipping’ in the Indian startup ecosystem with companies like Razorpay, Pine Labs, Mensa Brands, Udaan, looking to shift their domiciles back to India.

Source: Inc42 Media