Innoviti Cost Options Pvt. Ltd has raised Rs 35.6 crore ($5 million) in debt funding from FMO, the Dutch growth financial institution stated in a disclosure.
FMO stated in a disclosure that the Bengaluru-based agency’s funds answer is designed for small companies in keeping with the financial institution’s technique of catalysing financial development and bridging the digital divide.
With round 63.Four million models all through the nation, MSMEs or micro, small and medium enterprises account for round 31% of the financial system in addition to 33.4% of India’s manufacturing output, the financial institution noticed.
Innoviti was based in 2002 by Rajeev Agrawal, who holds a B.Tech diploma and PhD from IIT-Bombay. Earlier than coming to be an entrepreneur, he had labored with know-how agency Sasken Communications in Bengaluru.
Innoviti’s funds enterprise, launched in 2008, helps retailers obtain funds throughout channels, together with on-line, cellular, in-store and on the time of supply of a product. Via smelending.com, the corporate helps companies get short-term loans of Rs 30,000 for 15 days or extra.
Innoviti claims to course of over Rs 20,000 crore of fee transactions yearly together with Rs 1,000 crore of credit score throughout 50,000 point-of-sale terminals yearly. Smelending.com has processed greater than 150,000 loans yearly for over 30,000 small companies. It has to date disbursed $500 million loans.
Innoviti’s consumer base of retailers consists of Reliance Retail, Titan, Landmark Group, INOX, Indigo and Walmart. Lenders comparable to HDFC Financial institution, ICICI Financial institution, Axis Financial institution, State Financial institution of India, Customary Chartered, Kotak Mahindra Financial institution and Citibank use the platform to course of their clients’ funds and distribute loans.
Innoviti had raised Rs 80 crore in its earlier spherical led by enterprise debt agency Trifecta Capital in March final 12 months.
Previous to that, it secured $18 million in July 2017 in a Sequence B spherical from SBI-FMO Fund, Bessemer Enterprise Companions LP and present investor Catamaran Ventures.
Innoviti competes with the likes of Pine Labs, BharatPe and Mswipe within the digital funds area in India.
Pine Labs Pvt. Ltd final month raised funding from Mastercard Inc., marking the second reported guess the worldwide know-how funds large has made on an Indian agency inside six months.
New York-based hedge fund Coatue Administration can also be reported to be main a spherical of funding as much as $100 million in BharatPe, which companies offline retailers and companies, at a valuation of $500 million. It additionally counts Ribbit Capital, Perception Companions and Steadview Capital amongst its backers.
Mumbai-based cellular point-of-sale companies startup Mswipe Applied sciences Pvt. Ltd had raised $31.5 million from tech funding agency Epiq Capital and enterprise capital agency B Capital, managed by Fb co-founder Eduardo Saverin early final 12 months.
FMO’s India investments
The Dutch growth financial institution funds initiatives by way of fairness and debt devices in sectors comparable to agri-business, meals and water, vitality and monetary establishments in underserved areas. Together with Washington-headquartered Worldwide Finance Company, it is likely one of the most lively world funding establishments in India.
In November final 12 months, it invested about $30.27 million in CreditAccess Grameen Ltd, which operates a microlending enterprise below the Grameen Koota model identify. On the finish of October, it proposed a $40 million debt funding in non-banking finance firm Ess Kay Fincorp Ltd.
In the identical month, it proposed a 7.50 million euro ($8.29 million) funding in Sahyadri Farmers Producer Co. Ltd. FMO stated the proposed funding will assist Sahyadri finance the development of assortment centres for the warehousing and transport of produce.
Its different bets embody a debt funding of $30 million in Kolkata-based Srei Gear Finance Ltd, and Nomisma Cell Options Pvt. Ltd, which owns digital funds and loans platform Ftcash.