Mintifi, a digital lending platform for distributors and retailers, has raised $40 million (about Rs 299 crore) in its Series C funding round led by Norwest Venture Partners and Elevation Capital. The round also saw participation from existing investors IFC and Lok Capital. Avendus Capital acted as the financial advisor to Mintifi on the transaction.
The company said it will use the fresh funds to continue to build on its tech infrastructure, expand its product offerings, including BNPL solutions for SMEs, scale the co-lending platform through its plug-and-play solution, and deepen its engagement across the supply chain network by building an end-to-end fulfilment platform across industries.
“The nature of our lending is more akin to buy-now-pay-later (BNPL) loans to businesses, where we help distributors with customized short-term loans and help them buy more inventory and pay later,” Anup Agarwal, cofounder and chief executive of Mintifi, told ET.
Founded in 2017 by Anup Agarwal, Ankit Mehta and Sanjoy Shome, Mintifi partners with corporates and provides for the working capital needs of their distributors, giving short-term loans of up to 90 days at zero interest. The company works with corporates across 10 industries including automotive, FMCG, kitchenware and apparel, and has built a loan book of over Rs 2,000 crore since inception.
Currently, Mintifi has close to 100 corporates on its network and provides loans to over 9000 distributors and retailers. It clocked loan disbursals worth Rs 160 crore last month. With the latest fundraising, Mintifi is looking to scale its monthly disbursements to Rs 500 crore by March 2023.
It is also looking to scale its overall disbursals to $1 billion (or Rs 7,500 crore) and add 150 members to its operations team over the next 12 months. Mintifi deducts a transaction charge to corporates for the credit it provides.
“Mintifi adopts a full-stack approach to address the transaction, financing and payments needs of the B2B ecosystem through its unique B2B BNPL solution and technology platform. Mintifi’s offering has witnessed strong adoption from over 100 leading brands in India while operating a profitable business model,” said Niren Shah, managing director and head of Norwest Venture Partners India.
“Over the years, Mintifi has created a distinctive business model with a very strong product-market fit and customer delight and as a result, the business has demonstrated strong growth as well as unit economics,” said Mridul Arora, partner at Elevation Capital.
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