Mintifi, a key player in India’s supply-chain financing sector, has made headlines by closing a USD 180 million Series E funding round. The deal, finalized on 10 December 2024, was spearheaded by Teachers’ Venture Growth (TVG) – the late-stage investment arm of the Ontario Teachers’ Pension Plan – alongside global investment powerhouse Prosus. Premji Invest, an existing backer, also participated in the round, signalling continued confidence in Mintifi’s trajectory.
Implications of the Funding for Mintifi
This funding round has propelled Mintifi’s valuation to a staggering USD 850 million. Of the USD 180 million raised, USD 100 million was primary capital injected into the business, while the remainder involved secondary transactions. These secondary deals turned out to be highly lucrative for early investors, delivering returns of 11-12x. Lok Capital, Mintifi’s first investor, opted for a full exit, while the International Finance Corporation (IFC) partially reduced its stake. Additionally, Mintifi used this opportunity to reward its team, monetizing employee stock options (ESOPs) to acknowledge their contributions.
Behind Mintifi’s Business Boom
Founded in 2017 by trio Siddharth Agarwal, Ankit Mehta, and Sanjoy Shome, the company has carved out a niche in providing financial solutions tailored to small and medium enterprises (SMEs). By partnering with over 300 prominent brands such as Asian Paints, Honda, TVS, and Parle Products, the company offers a range of services including payment solutions, invoice financing, and customized credit options aimed at streamlining last-mile distribution.
The startup’s performance speaks volumes. The company’s loan book has ballooned from INR 1,100 crore in March 2023 to INR 2,600 crore as of December 2024. Meanwhile, its monthly revenue run rate has climbed to INR 45 crore, setting the stage for annualized revenue of INR 600 crore. Notably, the firm is operating at an anticipated net profit margin of 20-25%. In FY24 alone, the company’s revenues nearly doubled to INR 319.1 crore, up from INR 150 crore the previous year, with consolidated net profits hitting INR 97.8 crore.
New Horizons and Innovations
Mintifi isn’t resting on its laurels. It’s actively rolling out new products and services to stay ahead in the competitive supply-chain financing landscape. Recent additions to its portfolio include dealer management systems, loans against property, and factoring services. Notably, the company recently obtained a factoring license from the Reserve Bank of India (RBI), marking a strategic shift in its service offerings. A dedicated team is already in place to capitalize on this opportunity.
The startup is also doubling down on technology. Plans to integrate artificial intelligence into its systems aim to elevate customer experience and operational efficiency. This tech-driven approach reflects Mintifi’s commitment to staying future-ready while tackling evolving market demands.
Mintifi’s IPO Ambition
With its latest funding boost, the company has its sights set on going public. The company is eyeing an initial public offering (IPO) within the next three years, provided market conditions align. Such a move would position Mintifi as a formidable force among rivals like Oxyzo, InCred, Kinara Capital, and NeoGrowth.
Conclusion
Mintifi’s Series E funding isn’t just about the money; it’s a testament to the startup’s growth story and potential. With a clear focus on financial innovation, strategic partnerships, and tech integration, the company is reimagining what supply-chain financing can achieve for SMEs. As it scales new heights, the company’s vision and execution are setting benchmarks for the sector.
In a landscape teeming with competition, Mintifi’s ability to combine profitability, innovation, and investor trust makes it a name to watch. This funding round is a milestone, but it’s likely just the beginning of a much larger narrative. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
