Mintifi raises $40 million in fresh funding led by Norwest VP and Elevation Capital

The company expects to use the funds to build on its existing technology infrastructure, expand into newer offerings as well as scale up its team.

Founded in 2017, Mintifi partners with corporates and provides for the working capital needs of their distributors, giving short-term loans 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 2000 crore, since inception.

With this fundraise, the company has raised a total of $60 million in equity and another $40 million in debt to date.

“The nature of our lending is more akin to buy-now-pay-later (BNPL) loans to businesses, where we help distributors with customised short term loans and help them buy more inventory and pay later. Our lending system rides on the dealer management software of corporates and distributors, which allows them to either pay for the inventory upfront in cash or choose the pay later option through Minitifi,” explained Anup Agarwal, cofounder and chief executive officer, at Mintifi, in an interaction with ET.

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 fundraising, Mintifi looks to turbocharge its growth and scale its monthly disbursements to Rs 500 crore by March 2023. It is also looking to scale its overall disbursals to $1 billion (or roughly Rs 7500 crore) and add 150 members to its operations team over the next 12 months.

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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 at Norwest Venture Partners India.

Mintifi is looking to diversify its offerings and offer full-stack services such as warehousing, distribution and logistics to corporate manufacturers. It is also looking to extend its offerings to new-age direct-to-consumer brands, helping them connect with distributors and provide end-to-end supply chain services.

“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. We are privileged to be partnering with the Mintifi team on their journey to scale,” said Mridul Arora, partner at Elevation Capital.

Avendus Capital acted as the financial advisor to Mintifi on the transaction. Other investors in Mintifi include International Finance Corporation (IFC) and Lok Capital.