PayPal Ventures-backed Mintoak secures Rs 71 Cr in secondary funding

Mintoak, a merchant SaaS platform catering to banks and merchant acquirers, has raised Rs 71 crore (around $8.2 million) in a secondary funding round led by Z3Partners.

As part of this transaction, Z3Partners will acquire a minority stake from some of Mintoak’s early institutional investors. However, the company did not disclose the names of the investors involved in the secondary transaction.

In February 2023, the Mumbai-based startup raised $20 million in its Series A funding round led by PayPal Ventures and others. In December 2022, HDFC Bank acquired a minority stake in the Mumbai-based fintech startup Mintoak for a cash consideration of $3.7 million. It then increased its stake to 7.75% from the current 5.20%.

The Mumbai-based firm has raised Rs 192 crore (nearly $25 million) to date.

Founded by Raman Khanduja, Rama Tadepalli, and Sanjay Nazareth, the company’s product suite includes a range of SaaS offerings that help banks and merchant acquirers connect with their small and medium enterprise (SME) customers and drive the cross-sell of financial products.

The seven-year-old firm claims to serve over 1.5 million merchants across leading banks, including HDFC Bank, SBI, and YES Bank in India and international markets such as Africa and the Middle East.

The startup enables merchant acquirers to deploy and rapidly scale their SME base through payments, cross-selling, service, and gamified loyalty campaigns. Mintoak claims to have empowered 3 million merchants across 6 countries in South Asia, Africa, and the Middle East.

According to the startup data intelligence platform TheKredible, Mintoak registered Rs 72.59 crore in revenue from operations in FY24 against Rs 42.3 crore in FY23. During the period, its losses jumped twofold to Rs 21.45 crore.

Z3Partners invests in high-growth, tech-driven companies across India, focusing on sectors such as consumer tech, fintech, healthtech, SaaS, and tech-enabled businesses. The firm’s portfolio includes companies like Altum Credo, Bhanzu, DealShare, Shipsy, TrueFan, among others. Some of its prior investments have been Bigbasket, OfBusiness, and others.