Move designed to help offline SMBs grow sales by using digital advertising channels
Bengaluru-Based Innoviti Payment Solutions, the largest provider of intelligent payment solutions to offline merchants, has acquired Digital Marketing Services startup xGrow that specializes in integration of Google and FB tools for providing hyperlocal digital marketing services to SMBs.
“xGrow acquisition is in line with Innoviti’s core philosophy of turning each payment transaction into customer acquisition opportunity and enable SMBs to advertise and acquire customers at lowest cost and also extract higher value from each transaction,” Ankur Shukla, Senior Vice President – Product Marketing, Innoviti, said in a release on 2 July 2021.
“Through xGrow acquisition we will integrate Digital consumer acquisition tools to Innoviti’s payments platform. This will help solve – Digital customer acquisition – one of the critical problems for SMBs and thereby augment digital marketing services for them,” said Shukla.
Also, the company has plans to onboard 100,000 local mobile dealers in the next three months to capture more than 50% market share of this space which is struggling with the lack of quality sales growth tools.
Additionally, it is launching short-term BNPL products in the Fashion and Food category to help consumers tide over the current economic challenges faced due to the pandemic.
Innoviti had raised a Series C in 2020 to further its differentiated strategy of servicing the retail market through category and segment specific products.
Bessemer Venture Partners in the USA, FMO of Netherlands and Catamaran Ventures of India are investors in the company.
Currently, all existing digital marketing tools are designed mainly for online businesses but when it comes to Offline SMBs there is lack of platforms that connects online ads and brings customers to offline stores and engage these customers post purchase.
Innoviti’s strategically designed hyperlocal digital marketing platform G.E.N.I.E uses low code technology of Sales Force Automation (SFA) to integrate targeted advertising tools of Google and Facebook for hyperlocal targeting of customers for 1 million SMBs in India. With this, SMBs will not only be able to advertise and run offers for their catchment customers, but also track the consumer journey from advertisement to sale closure through a unique coupon technology. Machine Learning algorithms will continuously optimize the targeting based on actual customer purchase, rather than just intent, improving ROI multi-fold for SMBs. SMBs will be able to grow faster and easier at a fraction of the cost they incur today.
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 acquisition of xGrow is a first for Innoviti and comes at a time when the company is on a superfast growth path and recently announced that in the year 2020-21 its GTV has crossed US$10 billion with net ARR doubling to US$18 million. 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%, highest in the offline payments industry. xGrow deal by Innoviti has both Cash & Stock components
Innoviti has a 76% market share of all payments happening in this segment. It has been a pioneer in using technology to help businesses extract better value from retail transactions than anyone else. The company processes over US$10 billion of merchant payments from over 1,000+ cities with a volume throughput per installation that is 2X of the country’s average.
The company has several patents filed for with two awarded. Innoviti is the winner of Mastercard’s Innovation Wizards Award, Reliance’s Most Promising Growth Consumer Finance Award and Deloitte Fastest Growing Companies in Asia award in 2020. Innoviti is the only Indian payments SaaS company to be awarded the coveted SOC3 seal of excellence for adherence to principles of trust in privacy, security, confidentiality, availability, and processing of transactions. #digital #technology #banking #investment /fiinews.com
