SUMMARY
- OTPP, Bain Capital, Advent International, and at least 20 investors, are set to contribute to Mintifi’s latest funding round.
- The round is anticipated to extend up to $100 million.
- The digital lending platform intends to use this fresh capital to expand its loan portfolio and increase total disbursements.
Ontario Teachers’ Pension Plan (OTPP), along with private firms such as Bain Capital and Advent International, and at least 20 investors, are set to contribute to Mintifi‘s latest funding round, which is anticipated to extend up to $100 million, as reported by Moneycontrol.
As per the sources, “Mintifi is, however, yet to decide on the next and final steps based on the valuation that it is being offered.”
Mintifi collaborates with major companies including Tata Motors, Nivea, and Page Industries, which serves as the exclusive licensee for Jockey in India, among others, to digitize their supply chains and provide credit to stakeholders, including distributors and retailers. Through Mintifi’s services, distributors are able to procure inventory on credit.
In March 2023, Mintifi secured $110 million in funding, led by Premji Invest. This round also attracted participation from existing investors such as Norwest Venture Partners, Elevation Capital, and the International Finance Corporation (IFC).
Mintifi, which also serves small and medium-sized enterprises (SMEs), has seen its valuation increase from $200 million to approximately $400 million in 2023. The company is positive about achieving a higher valuation during the ongoing negotiations.
Although it has not yet filed its financial results for FY24, Mintifi turned profitable in FY23 as it reported a net profit of Rs 25 crore on a revenue of Rs 227 crore as per data available on Tracxn. This represents an improvement from a top line of Rs 60 crore and a loss of Rs 1 crore in FY22.
Mintifi’s financial performance is expected to further improve as the company expands its network of corporate partners, moving from 150 to over 200 and beyond. On a monthly basis, Mintifi is reportedly disbursing approximately $100 million in credit and is on track to increase this amount to around $400 million this year, with plans to grow its loan portfolio to over $1 billion.
This round, if it materializes, will be a primary capital infusion. The digital lending platform intends to use this fresh capital to expand its loan portfolio and increase total disbursements.
Established in 2017 by Anup Agarwal, Ankit Mehta, and Sanjoy Shome, Mintifi has successfully raised approximately $170 million to date. The company competes with other digital lending platforms such as KredX, Oxyzo, FinAGG, Cashflo, Cashinvoice, Vayana, Credable, InCred, Lendingkart, NeoGrowth, Flexiloan, Indifi, and others in the invoice discounting sector, as well as with InCred, Lendingkart, NeoGrowth, Flexiloan, Indifi, and others in the business working capital loan segment.
The company offers credit from its own books in collaboration with Utkarsh Small Finance Bank, Fullerton India and Muthoot Finance. It also houses NBFC Mintifi Finserve Pvt Ltd.
Mintifi also offers a range of financing solutions including working capital loans, term loans, overdraft facilities, supply chain financing, and bill discounting services to small and medium-sized enterprises.
Its offerings include a credit line of up to Rs 2 crore for businesses seeking to purchase inventory directly from brands or distributors, and collateral-free business loans up to Rs 50 lakh, as detailed on the company’s website.
