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, 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%, the 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 the setting up of a distributed support and supply chain structure. The company has set up 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 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.
Source: Business World