Mintifi reports Rs 92 Cr PAT on Rs 384 Cr revenue in FY24

Supply-chain financing startup Mintifi has secured $180 million in a Series E funding round co-led by GTV and Prosus this month. The funding comes after Mintifi recorded a 4X growth in profit after tax (PAT) and a 72% year-on-year increase in operating scale in FY24.

While we will delve into its expense pattern later in the story, let’s first explore Mintifi's revenue streams and their growth in the last fiscal year.

Mintifi’s revenue from operations rose to Rs 384 crore in FY24 from Rs 223 crore in FY23, according to its consolidated annual financial statements filed with the Registrar of Companies (RoC).

Founded in 2017 by Anup Agarwal, Ankit Mehta, and Sanjoy Shome, Mintifi caters to the last-mile distribution network and offers payment, invoicing, and financing solutions to small and medium enterprises (SMEs) across industries. 

Interest income from the disbursement of loans accounted for 80% of the revenue which increased 2X to Rs 308 crore in the last fiscal year. The rest of the income came from the sale of goods (textiles) recorded as inventory which was procured by distributors/retailers on a deferred payment basis.

Mintifi also earned Rs 17 crore from interest on current investments, bringing its overall revenue to Rs 401 crore, a 76.6% year-on-year increase from Rs 227 crore in FY23.

The Mumbai-based firm's employee benefits cost grew 65% to Rs 66 crore in FY24, while the inventory procurement cost stood at Rs 70 crore in the same period. To the tune of scale, its finance cost increased by 54% to Rs 54 crore during the last fiscal year.

Its legal, training, recruitment, impairment losses, and other overheads drove the Premji Invest-backed firm’s overall expenditure up by 44.3% to Rs 277 crore in FY24, compared to Rs 192 crore in FY23.

The significant surge in scale and controlled expenditure helped Mintifi post a 3.7X spike in its profits to Rs 92.5 crore in FY24 from Rs 24.8 crore in FY23. Its ROCE and EBITDA margins improved to 12.2% and 46.7%, respectively. Mintifi’s expense-to-earning ratio stood at Rs 0.72. According to the annual report, its current assets were recorded at 2,343 crore with Rs 200 crore of cash and bank balances as of March 2024.

Mintifi has raised approximately $340 million to date, including its recent $180 million round, a mix of primary and secondary funding, which valued the company at $850 million. Notable investors in the seven-year-old firm include Prosus, Elevation Capital, Premji Invest, and Lok Capital, among others.

A bunch of startups in supply chain financing have raised funding in the past couple of years. Vayana Network, 3SC, Wiz Freight, Cashinvoice, M1xchange, Progcap, FinAGG Technologies, CredAble, and Veefin. Check TheKredible for their funding and latest financials.

While Mintifi has built a business around financing thanks to the inefficiencies in public sector bank lending and the banking sector more broadly, it faces an increasing challenge from other startups. The other startups started off offering a broader set of solutions before realising that financing was the one need that could be filled profitably and at some scale. Minitifi has clearly demonstrated enough savvy to earn the confidence of investors to scale up massively, and at this rate, could be in line for yet another IPO in 2025 perhaps at unicorn plus valuations.