Online lending platform Mintifi to get $8-mn cheque from IFC

International Finance Corporation, the private-sector investment arm of the World Bank, will invest up to $8 million (about Rs 57 crore at current exchange rates) in online lending platform Mintifi Pvt. Ltd, it said in a disclosure.

With the investment, Mintifi can provide uncollateralised small-sized working capital credit to micro, small and medium enterprises (MSMEs). It will also help the company improve its capacity and raising funding for on-balance sheet lending, the disclosure added.

The investment proposal will be placed before IFC’s board on 8 March.

Mintifi provides financing solutions to MSMEs that act as dealers or distributors for small and mid-sized corporates in India, according to the disclosure. It also allows financial service providers to effectively on-lend to these segment through its platform.

The key products offered by the company include small short-term loans, overdraft facility, working capital and bill discounting.

Mintifi’s customer segment include MSMEs operating primarily in travel, hospitality, education, services and supplies segments among others.

The Mumbai-based lending firm was founded in 2017 by Anup Agarwal and Ankit Mehta. Sanjoy Shome joined as co-founder last year. 

Agarwal previously worked at investment bank Jefferies, the firm’s website states, while Mehta was the co-founder of big data platform Audience73 and Shome had stints at NBFCs NeoGrowth Credit and Fullerton India Credit Company, their LinkedIn profiles show.

Last year, the co-founders floated a registered non-banking financial company called Mintifi Finserv Pvt. Ltd, its filings with the Registrar of Companies show.

In April last year, VCCircle reported that Mintifi had raised $2 million (Rs 13 crore) in a seed round from impact investment firm Lok Capital.

International Finance Corporation

Apart from providing debt financing, the IFC also makes direct private equity-style investments. It also backs private equity and venture capital funds.

In December last year, it proposed to co-invest with India-focused mid-market private equity firm Lighthouse Funds in footwear maker Aqualite Industries.

In November 2018, it said it would provide up to $20 million (around Rs 146 crore) in trade finance to Dubai-based commodities company Phoenix Global DMCC in India.

In the same month, IFC said it would offer up to $50 million (Rs 350 crore) in debt financing to Bengaluru-based Ujjivan Small Finance Bank.