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Payment gateway and PoS firm Innoviti closes Series E funding

EntrackrEntrackr · 11m ago
Payment gateway and PoS firm Innoviti closes Series E funding
Medial

Payment gateway and point of sales (PoS) provider Innoviti has Rs 70 crore ($8.5 million) in a combination of equity and debt. The second tranche of Series E round was led by Random Walk Solutions, with participation from existing investors Bessemer Venture Partners USA, Patni Family Office India, and Alumni Ventures. The Bengaluru-based company raised the first tranche of Series E in April this year. Post closing Series E, the company will be working towards its IPO within the next 12 months. Innoviti provides payment gateway and PoS devices to merchants to collect card-based payments. Its big ticket-size clients include Reliance, Tanishq, and Shoppers Stop among others. As per Innoviti, its enterprise POS solution, uniPAYNext, is operating at an EBITDA of 20%, and growing at a 23% annualized rate while the electronics EMI solution, GENIEPlus, is growing at 80% annually, and operating at a -18% EBITDA. Meanwhile, GENIEPlus is expected to breakeven by the end of this fiscal year (FY25). Overall, the company claims to be operating at an annualized run-rate of Rs 160 crore with an EBITDA of Rs -8 crore. It targets to become operating profitable in the next couple of quarters. While Innoviti is yet to file audited financials for FY24, its operating revenue grew 48% to Rs 110.2 crore in FY23. The company’s ARR and current EBITDA claims indicate a turnaround as its losses stood at Rs 86.5 crore in FY23. Service fees charged from these facilitations were the sole source of operating revenue for Innoviti in FY23. Earlier this year, Innoviti also received the final authorization from RBI to operate as an online payment aggregator.

Amazon-backed Axio raises $20 Mn via right issue

EntrackrEntrackr · 10m ago
Amazon-backed Axio raises $20 Mn via right issue
Medial

Online lending platform Axio (formerly Capital Float) has raised Rs 167 crore (around $20 million) from existing investors via right issue. The board at Axio has passed a special resolution to issue 11,25,000 preference shares at an issue price of Rs 1,486 each to raise Rs 167 crore or $20 million, its regulatory filing accessed from the Registrar of Companies (RoC)shows. The rights issue will be offered to existing shareholders at a ratio of 0.51 shares for every 1 share they currently hold, the filing further added. While the firm didn’t disclose investors’ names, Amazon is likely to have participated with substantial contribution. Amazon was also in talks for complete acquisition of Axio. Entrackr exclusively reported this in July. Amazon is an investor in Axio which participated in the firm’s Rs 144 crore extended Series C round in 2018. Amazon used to own around 8% of the Bengaluru-based lending platform before the fresh round. According to the startup data intelligence platform TheKredible, Light Rock was the largest external shareholder with 19.42% before this round, followed by Elevation which owned 13.84%. Peak XV, Creation, Amazon, and Ribbit and QED Innovations are its other backers. In a recent statement to the media, Axio’s co-founder Sashank Rishyasringa said that the firm saw 50% jump in its revenue and 95% reduction in its losses in the last fiscal year (FY24). While Axio is yet to disclose the exact numbers of FY24, the Bengaluru-based company reported 2X growth in its revenue to Rs 220 crore in FY23 as compared to Rs 110 crore in FY22. The Lightrock-backed firm’s losses grew marginally to Rs 137 crore in the fiscal year ending March 2023.

Google-backed ShareChat raises $49 Mn debt

EntrackrEntrackr · 1y ago
Google-backed ShareChat raises $49 Mn debt
Medial

Mohalla Tech, the parent entity of the vernacular social media platform ShareChat and short video entertainment app Moj, has raised around $49 million in debt from existing investors. The company has passed a board resolution to issue 4,895 Series I debentures at an issue price of $10000 each to raise $49 million, regulatory filing with RoC shows. Existing investors including Temasek, Lightspeed, HarbourVest, Moore Strategic, Rimco and Alkeon invested in the debt round. Inc42 reported the development first. The fresh funding comes at a time when ShareChat was looking to raise $50 million in a down round to the tune of $1.5 billion. The firm was valued at $5 billion during its last fundraise in June 2022. According to startup data intelligence platform TheKredible, ShareChat has raised around $1.8 billion from investors including Twitter (now X), Alkeon Capital, Moore Strategic Ventures, and Tencent, among others. ShareChat has been eyeing a large equity round but the company is finding it difficult to rope in new and existing backers. It also put several cost-cutting measures and laid off 700 employees across two phases in 2023. The company’s struggle is largely driven by its inability to monetise from the user base which has low-purchasing power. Even after nine-year of its operations, ShareChat had to spend nearly Rs 4,000 crore in FY23 to earn Rs 533 crore in revenue. On a unit level, it spent Rs 7.16 to earn a rupee of operating revenue in the last fiscal. This is one of the highest expense-to-revenue ratios for a unicorn in FY23. The surge in losses was primarily due to the write-off undertaken by the company for the acquisition of Moj’s competitor MxTakaTak. The company spent heavily ($700 million via cash and stock) to acquire the Times Internet-backed company. While ShareChat has almost no competition after the blanket ban on China-origin apps like Bytedance-owned Helo, its short video app Moj competes with Dailyhunt’s Josh, YouTube Shorts and Instagram.

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