Mintifi’s FY24 Profit Zooms 273% To INR 92.5 Cr

Supply-chain financing startup Mintifi’s net profit zoomed 273% to INR 92.53 Cr in the financial year 2023-24 (FY24) from INR 24.79 Cr in the previous year on the back of robust growth in its topline and improvement in margins.

Revenue from operations surged nearly 72% to INR 383.67 Cr during the year under review from INR 223.20 Cr in FY23.

The Mumbai-based fintech company primarily earns revenue from interest levied on merchants for loans disbursed, the sale of textile products and consulting services among others.

Interest income on the disbursement of loans accounted for almost 80% of the company’s operating revenue. The revenue from this segment jumped 108% to INR 308.66 Cr in FY24 from INR 148.17 Cr in the previous year.

Including other income of INR 17.80 Cr, total revenue climbed almost 77% year-on-year to INR 401.47 Cr in the year ended March 31, 2024.

Founded in 2017 by Anup Agarwal, Ankit Mehta and Sanjoy Shome, Mintifi caters to the last-mile distribution network. It provides an array of financing solutions, from payment to invoicing and credit risk assessment, to small and medium enterprises (SMEs) across industries.

The company claims to have partnered with the likes of Tata Motors, Nivea, and Page Industries, among others, to digitise their supply chain.

It counts International Finance Corporation (an arm of the World Bank), Lok Capital and Growth Catalyst Partners among its key backers.

Last month, Mintifi raised $180 Mn in a mix of equity and debt as part of its Series E funding round co-led by Teachers’ Venture Growth (TVG) and Prosus, with participation of existing investor Premji Invest.

It was also earlier reported that the startup was in talks to raise $100 Mn from a clutch of investors, including Ontario Teachers’ Pension Plan (OTPP), Bain Capital and Advent International.

The company’s cash and cash equivalents stood at INR 198.15 Cr at the end of the fiscal year 2023-24, down 52% from 417.39 Cr in FY23.

Zooming Into Expenses

In line with the growth in its topline, Mintifi’s total expenses also rose sharply to INR 276.68 Cr in FY24, up nearly 44% from 192.35 Cr a year ago.

Purchase of Stock-In-Trade: Although Mintifi managed to control its spending under this bucket, purchase of stock-in-trade still emerged as the biggest expense head for the company in FY24 at INR 70.88 Cr.

Employee Benefits Expense: The company spent INR 54.54 Cr towards employee benefits expense during the year under review, almost 58% higher than INR 34.59 Cr it spent under this head last year.

Impairment Loss On Non-Financial Assets: Mintifi incurred an impairment loss on non-financial assets to the tune of INR 45.63 Cr in FY24, more than double the INR 21 Cr loss it incurred in this bracket last year.