Highlights
Mintifi Secures $180 Million in Series E Funding Round
Supply-chain financing startup Mintifi has successfully raised $180 million in a Series E funding round, co-led by GTV and Prosus this month. This funding follows Mintifi’s impressive growth, showcasing a 4X increase in profit after tax (PAT) and a 72% year-on-year rise in operating scale for FY24.
Revenue Growth in FY24
Before delving into the company’s expense patterns, it is essential to highlight Mintifi’s revenue streams and their growth during the last fiscal year.
- Mintifi’s revenue from operations increased to Rs 384 crore in FY24, up from Rs 223 crore in FY23, based on its consolidated annual financial statements filed with the Registrar of Companies (RoC).
Established in 2017 by Anup Agarwal, Ankit Mehta, and Sanjoy Shome, Mintifi focuses on the last-mile distribution network. The company provides payment, invoicing, and financing solutions tailored for small and medium enterprises (SMEs) across various industries.
Breakdown of Revenue Sources
Key components of Mintifi’s revenue include:
- Interest Income: The majority, accounting for 80% of the total revenue, came from loan disbursements, which doubled to Rs 308 crore in the last fiscal year.
- Sales Income: Revenue also stemmed from the sale of goods, primarily textiles, procured by distributors and retailers on a deferred payment basis.
- Current Investments: Mintifi garnered Rs 17 crore from interest on its current investments, elevating the total revenue to Rs 401 crore—a significant 76.6% increase from Rs 227 crore in FY23.
Expenditure Overview
In FY24, Mintifi’s operational expenditures revealed the following insights:
- Employee benefits costs surged 65% to Rs 66 crore.
- Inventory procurement costs totalled Rs 70 crore.
- Finance costs saw an increase of 54%, reaching Rs 54 crore.
- Overall expenditures, driven by legal, training, recruitment, impairment losses, and other overheads, rose 44.3% to Rs 277 crore compared to Rs 192 crore in FY23.
Profitability and Financial Health
Mintifi’s substantial scale increase and managed expenditures led to a remarkable 3.7X rise in profits, reaching Rs 92.5 crore in FY24, up from Rs 24.8 crore in FY23. Key financial metrics include:
- Return on Capital Employed (ROCE): 12.2%
- EBITDA Margin: 46.7%
- Expense-to-Earning Ratio: Rs 0.72
According to the annual report, as of March 2024, Mintifi recorded current assets valued at Rs 2,343 crore and maintained Rs 200 crore in cash and bank balances.
Investment Journey and Valuation
To date, Mintifi has raised approximately $340 million, including the recent $180 million round, combining both primary and secondary funding, which has led to a company valuation of $850 million. Prominent investors supporting Mintifi include Prosus, Elevation Capital, Premji Invest, and Lok Capital, among others.
Competitive Landscape
A number of startups in the supply chain financing sector have also secured funding in recent years, such as:
- Vayana Network
- 3SC
- Wiz Freight
- Cashinvoice
- M1xchange
- Progcap
- FinAGG Technologies
- CredAble
- Veefin
While Mintifi has successfully navigated the inefficiencies in public sector bank lending, it now faces increasing competition from other startups. Many of these ventures began by offering a diverse range of solutions but later recognised that financing was a lucrative niche to target effectively. Mintifi has demonstrated considerable acumen, earning investor confidence while scaling up substantially, positioning itself potentially for another IPO in 2025, possibly at unicorn-plus valuations.