Mintifi raises $180 million in funding, valuation soars to $850 million

Existing backer Premji Invest also participated in the round, which comprised both primary and secondary transactions. Of the total funding, $100 million represents a primary capital infusion, while the remainder facilitated liquidity for early investors. 

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“The secondary transaction includes a share sell by Lok Capital, our first backer, and a partial sell-down by IFC, which invested in 2019," chief executive Anup Agarwal said in an interview with Mint. He added that some employee stock options (ESOPs) were also monetized. “Our early backers got a phenomenal exit as part of this transaction, making about 11-12x return in the investment."

The funding round values Mintifi at $850 million, up from $500-550 million last year. The company raised $110 million in its previous round in March 2023, led by Premji Invest, alongside Norwest Venture Partners, Elevation Capital, and IFC. With the latest capital infusion, Mintifi’s total funding now stands at approximately $355 million.

Agarwal noted that the company is considering an initial public offering (IPO) within the next three years, contingent on market conditions. 

"Our capital solution helps founders consolidate their capital and prepare for the next round of growth. Having mature, long-term capital in the company prior to their IPO provides significant stability to the business," said Deepak Dara, senior managing director and head of India for Ontario Teachers’.

Founded in 2017 by Agarwal, Ankit Mehta, and Sonjoy Shome, Mintifi offers supply-chain financing, invoicing, and purchase financing solutions for distributors and retailers. It collaborates with over 300 brands, including Asian Paints, Parle Products, Honda, Shree Cement, TVS, and Castrol.

Mintifi competes with banks, non-banking financial companies, and other lending fintech companies in the segment like InCred, Oxyzo, Kinara Capital, NeoGrowth, and Indifi, among others.

Growth plans

The company plans to deploy the fresh capital to expand offerings such as dealer management systems, loans against property, domestic and overseas factoring, and AI-driven solutions. 

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Agarwal said that the company will invest heavily in expanding its supply chain business, onboarding more corporate partners and developing technology and distribution. "Supply chain is one segment that we'll continue to invest pretty heavily in," he said. 

Mintifi will also use the funds to build a cross-sell product for existing customers. "Those who have a great track record with us, and have their property available, they can migrate from an unsecured financing to a secured financing," he added.

Last month, Mintifi acquired a factoring licence from the Reserve Bank of India (RBI) and is assembling a team to operationalize the new business.

Business performance

Mintifi's loan book has grown to ₹2,600 crore, up from ₹1,100 crore during its previous funding round. 

Revenue tripled in FY24 to ₹319.1 crore from ₹150 crore in FY23. Consolidated net profit, before accounting for ESOP costs, surged to ₹97.8 crore in FY24 from ₹24.8 crore the previous year, according to a VCCircle report. 

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Agarwal expects a monthly revenue run rate of ₹45 crore in the current fiscal, translating to an annualized revenue of ₹600 crore, with a net profit margin of 20-25%, amounting to ₹150-175 crore. Mintifi aims to achieve growth of 40-50% over the next two years.