Mintifi raises $180 Mn funding at $850 Mn valuation

Supply-chain financing startup Mintifi has raised $180 million in a Series E funding round co-led by Teachers’ Venture Growth (TVG) and global investment firm Prosus. Existing backer Premji Invest also participated in the fundraise.

The round also includes Prosus’s $80 million which the firm announced last week. Following the fresh funding, Mintifi’s valuation surged to $850 million, as per the press release.

The funding included $100 million in primary capital and a secondary transaction that provided liquidity for early investors with returns of 11-12x on the invested capital. Lok Capital, Mintifi’s first backer, exited as part of the secondary sale, while International Finance Corporation (IFC) partially sold its stake. The transaction also enabled the monetization of employee stock options (ESOPs).

The proceeds are aligned with the company’s plans to diversify its product offerings, including dealer management systems, loans against property, and factoring services, leveraging artificial intelligence to streamline user experiences.

Founded in 2017 by Agarwal, Ankit Mehta, and Sanjoy Shome, Mintifi caters to the last-mile distribution network and offers payment solutions, invoicing, and customized financing solutions to small and medium enterprises (SMEs) across industries. The company collaborates with over 300 brands, including Asian Paints, Honda, TVS, and Parle Products.

Minitifi recently secured a factoring license from the Reserve Bank of India (RBI) and is assembling a team to operationalize this new business segment.

Mintifi’s loan book grew from Rs 1,100 crore during March 2023 to Rs 2,600 crore. The company expects a monthly revenue run rate of Rs 45 crore, which translates to an annualized revenue of Rs 600 crore with a net profit margin of 20-25%. Its revenue tripled in FY24 to Rs 319.1 crore, up from Rs 150 crore in FY23, while consolidated net profit surged to Rs 97.8 crore, the company added.

As per TheKredible, Minitifi has raised approximately $350 million to date from Premji Invest, Norwest Venture Partners, Elevation Capital, and, IFC among others.

As per Mintifi, it planning for an initial public offering (IPO) within the next three years, contingent on market conditions. The firm competes with peers like Oxyzo, InCred, Kinara Capital, and NeoGrowth.