News

Mintifi Bags $110 Mn Funding To Fulfil The Financing Needs Of Indian SMEs

Mintifi Bags $110 Mn Funding To Fulfil The Financing Needs Of Indian SMEs
SUMMARY

The round was led by Premji Invest, with participation from Norwest Venture Partners, Elevation Capital and IFC

Mintify offers credit solutions for SMEs and also enables corporations to digitise their supply chain, and provide purchase finance to their distributors

Mintifi claims to have grown over 4X year-on-year, financing annualised purchases worth more than $1 Bn.in FY23 so far

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

B2B digital lending startup Mintifi has raised $110 Mn (INR 902 Cr) as part of a Series D funding round led by Premji Invest

The funding round also saw participation from existing investors Norwest Venture Partners, Elevation Capital and International Finance Corporation (IFC), among others.

The startup will use the capital infusion to deepen its presence in the supply chain financing domain and expand its product range. The investment will also be deployed towards scaling up the B2B payments vertical and dealer management system. 

A part of the funds will also be spent towards strengthening its tech stack and enhancing engagement across the supply chain network by building an end-to-end fulfilment product range. The investment will also enable Mintifi to expand its capital base for credit purposes to more than $600 Mn. 

Commenting on the development, Mintifi cofounder and CEO Anup Agarwal said, “This round of funding will allow us to accelerate our growth, expand our team, and deliver even greater value to our customers. We are thrilled to have Premji Invest partner with us on this journey and are inspired by continued faith and participation from our internal investors.”

Founded in 2017 by Anup Agarwal, Ankit Mehta and Sanjoy Shome, Mintify is a B2B lending platform that is largely targeted at small and medium enterprises (SMEs) and offers products such as payments solutions, invoicing and customised financing solutions. Its offerings also enable big ticket corporations to digitise their supply chain, and provide purchase finance to their distributors.

“… Anup, Sanjoy, and Ankit have built a world-class team and a market-leading lending platform well positioned to meet Indian SME and MSME’s unaddressed demand for credit and more,” added Premji Invest’s Saravanan Nattanmai.

In February last year, the startup had raised $40 Mn as part of its Series C round led by Norwest Venture Partners and Elevation Capital in. Including the current fundraise, Mintify has so far raised $175 Mn in equity and debt from multiple investors.

It caters to some of the big names that operate in the country including Tata Motors, Bridgestone Tyres, Berger Paints, Polycab, NIVEA, among others. 

Mintifi claims to have grown over 4X year-on-year (YoY), financing annualised purchases worth more than $1 Bn. The startup expects the number to touch $3 Bn by the end of financial year 2023-24 FY24. 

It largely competes with fintech startups such as KredX and B2B building materials marketplace OfBusiness’ arm Oxyzo.

The announcement comes at a time when the Indian startup landscape has been hit by a funding drought. As per Inc42 data, Indian startups could raise a mere $693.47 Mn funding in February, a decline of 81% year-on-year (YoY).

Despite this, fintech continues to be the sector of choice, taking a lion’s chunk of funding raised last month. Of the total, homegrown fintech startups bagged $289 Mn in February, emerging as the most attractive bet for investors. 

While the pandemic spurred the rise of fintech startups, the growth momentum has continued well after that. In the case of B2B fintech products, these startups, especially target the cash-strapped SMEs who are still far away from the regular credit facilities of the Indian banking system. 

Partnering with NBFCs and banks, these fintech startups lend to small business owners and help them scale their ventures and increase liquidity in the market.

Meanwhile, fintech startups continue to raise hefty amounts. Last month, fintech startup Mintoak raised $20 Mn in a Series A funding round, while another EV-focused fintech startup Turno also bagged $13.8 Mn in Series A investment in February. 

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

Inc42 Daily Brief

Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy

Recommended Stories for You