Innoviti Payment Solutions -Largest provider of intelligent payment solutions to offline merchants, announced acquisition of Digital Marketing Services startup xGrow that specializes in integration of Google and FB tools for providing hyperlocal digital marketing services to SMBs.
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 $10 Bn with net ARR doubling to $18 Mn, the company said in its release.
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
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. The company is also 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.
“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, 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 Ankur Shukla, Senior Vice President – Product Marketing, Innoviti.
