The Netherlands Development Finance Company, which is also known by its Dutch acronym FMO, recently expressed interest in the possibility of placing an equity investment in Innoviti Payment Solutions, a digital financial services provider in India. The transaction would be disbursed in the amount of INR 356 million (USD 5 million) from MASSIF, a fund that FMO manages for the Dutch government. MASSIF invests in financial services providers and other organizations that serve “small businesses and micro-entrepreneurs, women and youth entrepreneurs, as well as supporting innovations in inclusive business.”
Innoviti, which was formed in 2002, offers the following products: (1) UniPay Next and Saadhan, devices that allow merchants to accept payment cards; (2) Total EMI and AnyCard EMI, which allow consumers to pay for purchases in “equated monthly installments (EMI)” at no additional cost to the merchant; and (3) SMELending.com, which facilitates “collateral-free, 30-day loans” from three lenders to 24,000 small business owners as of 2020. The firm also has enabled “in-store payment acceptance for 20,000+ merchants, across 300 cities and towns” and since inception, has reported USD 6.5 billion in total annual transaction processing volume. Innoviti’s investors include India-based Catamaran Ventures and a fund of Japan’s SBI Group.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private sector institutions. The bank works toward the UN’s Sustainable Development Goals by funding capacity development as well as placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. As of 2019, the bank reported a portfolio of EUR 9.7 billion (USD 10.5 billion).
Sources and Additional Resources
FMO press release
https://www.fmo.nl/project-detail/57504
Innoviti homepage
https://innoviti.com
Innoviti: About
https://innoviti.com/about/
FMO 2019 annual report
https://annualreport.fmo.nl/2018/reports/ir2019/at-a-glance
FMO’s MASSIF fund
https://www.fmo.nl/partner-with-us/massif
Innoviti profile on LinkedIn
https://www.linkedin.com/company/innoviti-payment-solutions-pvt-ltd/
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