India’s nearly 63 million small to medium-sized businesses account for 30% of the country’s GDP. But many lack access to credit tailored to their needs.
Mumbai-based Mintifi offers flexible supply chain financing for businesses in second- and third-tier cities, including revolving credit lines, collateral-free loans and invoice-based financing. It also facilitates payments between small businesses and larger brands like Parle Products, Honda and Tata.
Growth capital
Mintifi’s $180 million Series E round was co-led by Netherlands-based Prosus, which invests in fintech, edtech, e-commerce and other solutions. Prosus invested $80 million for a more than 10% stake. The other $100 million involved primary and secondary transactions.
Teachers’ Ventures Growth or TVG, the late-stage venture and private equity arm of the Ontario Teachers’ Pension Plan, was the other co-lead. Premji Invest, India’s largest family office and a previous Mintifi backer, also participated.
TVG’s Deepak Dara cited “Mintifi’s distinctive model of providing invoice-backed credit directly to brands, reinforced by robust risk guardrails and a proprietary tech stack.”
Impact exit
The injection of capital provided an exit for early investors such as Lok Capital, Mintifi’s earliest backer, which had re-upped its investment in 2018. The Delhi-based impact investor saw an 11x return on its capital, according to Mintifi.
The round also provided liquidity for employees via the company’s employee stock ownership plan. International Finance Corp., a repeat investor who participated in Mintifi’s $110 million Series D last year, also sold some of its shares.
