Innoviti, a Bessemer Venture Partners-backed digital payments firm, reported a 57% year-on-year reduction in net loss for FY26, bringing losses down to ₹26.7 crore despite a 17% decline in revenue. The company credits cost-cutting initiatives and operational efficiencies for this improvement.
- Net loss cut by 57% to ₹26.7 crore in FY26
- Revenue declined 16.7%, with offline revenue shrinking 20%
- EBITDA expected to turn positive in FY27
What happened
Innoviti, an Indian digital payments company, achieved a significant reduction in its net loss for fiscal year 2026, decreasing losses by over 57% to ₹26.7 crore from ₹62.1 crore in FY25. However, this improvement came amid a 16.7% drop in total revenue to ₹118.9 crore, driven primarily by a 20% fall in offline revenue. The company’s online revenue doubled to approximately ₹4.2 crore, reflecting growth in its digital presence.
On the cost side, Innoviti successfully reduced total expenses by nearly 28%, spending ₹148.9 crore in FY26 compared to ₹206.6 crore the previous year. Major expense reductions were seen in subvention/service fees, employee benefits, depreciation, and finance costs. The startup's cost discipline helped offset top-line pressures and improved its overall financial standing.
Why it matters
Innoviti’s ability to slash its net loss despite revenue contraction signals effective operational and financial management amidst challenging market conditions. The company’s shift toward increasing online revenue and cutting spending reflects a strategic focus on sustainability and profitability in the competitive Indian payments ecosystem.
What to watch next
Innoviti’s progress toward turning EBITDA positive in FY27 will be closely monitored by investors and the broader fintech community. The company will need to sustain cost efficiencies while expanding its customer base and increasing transaction volumes to maintain momentum. Tracking shifts in its mix of online versus offline revenues will also provide insights into evolving business dynamics.
Additionally, Innoviti’s potential Initial Public Offering (IPO), which has been hinted at since 2024 but remains pending, will be a critical event for the company and its stakeholders. Market response to the IPO and the company’s performance post-listing will be important indicators of its long-term growth trajectory in India's rapidly evolving digital payments sector.