Innoviti Technologies Reports Revenue Growth and Ongoing Losses in FY25

Innoviti Technologies, a payment gateway and point-of-sale (PoS) provider, has shown promising performance with a 35% year-on-year growth in revenue for the fiscal year ending March 2025, following a period of flat growth in FY24. Despite this revenue increase, the company’s losses remained significant, recorded at Rs 62 crore, although this reflects an 11% reduction year-on-year for FY25.

As detailed in its financial statement filed with the Registrar of Companies (RoC), Innoviti’s operating revenue surged to Rs 143 crore in FY25, up from Rs 106 crore in FY24. The firm has been instrumental in supplying payment gateway solutions and PoS devices to merchants, facilitating both online and card-based transactions. Service fees from these services accounted for 86% of its revenue, soaring by 47% to Rs 123 crore in FY25 from Rs 84 crore in FY24. The remaining 14% of revenue was derived from lease rentals, which stood at Rs 19 crore during the same period.

Taking into account additional non-operating activities such as treasury gains, Innoviti’s total income saw a slight increase, reaching Rs 144 crore in FY25.

Expense Overview for FY25

The company reported a 15% rise in total expenses, amounting to Rs 207 crore in FY25, up from Rs 180 crore the previous year. This rise was primarily driven by a substantial increase in subvention and service fees, which represented 40% of overall costs. The cost surged by 88% to Rs 82.5 crore in FY25 from Rs 44 crore in FY24. Conversely, employee benefit expenses witnessed a decline of 19%, reducing to Rs 43 crore in FY25 from Rs 53 crore in FY24. On the contrary, depreciation expenses increased by 32% year-on-year, rising to Rs 33 crore from Rs 25 crore in FY24. Other expenses, including advertisement, subcontractor charges, and additional overheads, contributed to the remaining Rs 49 crore of costs.

Loss Reduction and Financial Metrics

By the end of FY25, Innoviti was able to narrow its net loss by 11% to Rs 62 crore compared to Rs 70 crore in FY24. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss was reported at Rs 26 crore, with an improved EBITDA margin of -18.2%, up from -32.1%. The return on capital employed (ROCE) margin was recorded at -62.77% for the same period.

Balance Sheet and Funding Status

When examining the balance sheet, Innoviti’s total assets remained consistent at Rs 128 crore, featuring current assets worth Rs 100 crore in FY25, which included Rs 41 crore in cash and bank balances. Data from startup intelligence platforms reveal that Innoviti has successfully raised a total of $158 million in funding to date, with Bessemer Venture Partners and FMO identified as lead investors. The founder of the Noida-based company, Rajeev Agrawal, holds a 10% stake in the business.

This year, Agrawal expressed the company’s aspirations to attain operating profitability within the next two quarters. He also indicated that plans for an initial public offering (IPO) were underway, aiming for a public listing within the next 12 months.

While these statements and figures indicate potential for progress, they raise questions about the company’s long-standing track record. With over two decades of operations, Innoviti continues to record losses, finding it challenging to sustain momentum despite surpassing the Rs 100 crore revenue mark. The competitive landscape remains fierce, and while cash reserves appear robust, they may not suffice to compete against better-prepared rivals.