The Mumbai-based Fintech Startup Gains Big Backing from Z3Partners to Power the Next Wave of Digital Payments

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Mintoak Secures Rs 71 Crore to Boost Merchant Services and Expand Global Reach

Mintoak, a Mumbai-based SaaS platform that powers digital payments and banking solutions for small and medium-sized enterprises (SMEs), has raised Rs 71 crore (approximately $8.2 million) in its latest secondary funding round. The round was led by Z3Partners, a leading private equity firm, which now holds a minority stake in Mintoak by acquiring shares from some of the company’s early institutional investors. While Mintoak did not reveal the names of the investors selling their stakes, the deal comes just months after the company raised $20 million in its Series A round in February 2023, supported by major backers including PayPal Ventures.

Mintoak, founded in 2017 by Raman Khanduja, Rama Tadepalli, and Sanjay Nazareth, has quickly become a go-to platform for banks and merchant acquirers looking to engage and empower SMEs. Its range of software services includes digital payments, cross-selling of financial products, and loyalty campaigns—helping businesses enhance customer experiences, streamline payments, and drive sales growth.

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Why Mintoak Is a Game Changer for SMEs and Banks

For years, SMEs in India and across emerging markets have faced challenges when it comes to accessing reliable, affordable, and scalable financial solutions. While traditional banks and financial institutions have often catered to large enterprises, SMEs have been left with limited options, especially when it comes to technology-driven solutions.

Mintoak’s platform fills this gap by providing banks and merchant acquirers with the tools needed to offer digital solutions to millions of small businesses. Through its robust set of services, the company helps banks create seamless payment experiences, offer value-added financial products, and launch loyalty programs that encourage customer retention—all in a single, easy-to-use platform.

With an expanding client base that includes major banks such as HDFC Bank, SBI, YES Bank, and Axis Bank, along with international partners like Absa Bank, Network International, Burgan Bank, and NMB Bank, Mintoak has positioned itself as a leader in the fintech space.

In 2022, HDFC Bank also invested in the company by acquiring a minority stake of $3.7 million, which it later increased to 7.75% of the company’s equity, signaling the bank’s confidence in Mintoak’s growth trajectory.

As of now, Mintoak supports over 3 million merchants across six countries in South Asia, Africa, and the Middle East, with India alone accounting for more than 1.5 million merchants. The platform facilitates more than $50 billion in transactions annually, which is a testament to its growing presence in the digital payments ecosystem.

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Mintoak’s Growth: Revenue Soars, But Losses Mount

Despite the remarkable growth, Mintoak is still in the investment phase. According to data from TheKredible, Mintoak recorded revenue of Rs 72.59 crore in the fiscal year 2024, a sharp increase from Rs 42.3 crore the previous year. However, the company’s losses have also widened, jumping to Rs 21.45 crore in the same period. This is not unusual for fast-growing startups that are scaling aggressively to capture market share.

The latest funding from Z3Partners will provide Mintoak with the resources it needs to accelerate its growth while working on improving its profitability. The company plans to use the funds to expand its platform’s capabilities, enhance product offerings, and continue to innovate in the payments and fintech sectors.

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The Role of Z3Partners: What’s Driving the Investment?

Z3Partners’ investment in Mintoak is seen as a vote of confidence in the company’s ability to lead the digital transformation of SME banking. Gautam Patel, founder and managing partner at Z3Partners, highlighted that the firm’s decision to invest underscores the potential of Mintoak’s product-led growth strategy and its vision to reshape how banks interact with small businesses. Patel believes that Mintoak’s platform is uniquely positioned to tap into the growing demand for digital financial services in emerging markets.

According to Raman Khanduja, CEO and co-founder of Mintoak, Z3Partners’ involvement not only validates the startup’s vision but also provides an opportunity to further strengthen the company’s position in the market. Khanduja believes that the infusion of funds will enable Mintoak to enhance its platform’s technological infrastructure, increase market penetration, and continue to innovate in ways that help SMEs grow and thrive in an increasingly digital world.

The company is also exploring expanding into additional markets and enhancing its international partnerships. With growing demand for digital banking services in emerging economies, Mintoak is well-positioned to meet the evolving needs of SMEs worldwide.

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What’s Next for Mintoak? Expansion, Innovation, and Profitability

With its latest infusion of Rs 71 crore, Mintoak plans to accelerate its product development, introduce new features, and enhance its overall offering to better serve its existing and new customers. Here’s a breakdown of what’s next:

1. Geographic Expansion: Mintoak aims to deepen its presence in its existing markets in South Asia, Africa, and the Middle East, while also exploring opportunities in new regions. Expanding its merchant network and onboarding more banks and financial institutions are key to its growth strategy.
2. Platform Enhancements: The company is investing in enhancing its platform’s capabilities, with a focus on streamlining digital payments, improving the user interface, and integrating new financial products that SMEs can leverage.
3. Profitability Focus: While Mintoak is still in its growth phase, the company has expressed a commitment to improving its bottom line. With the fresh funding, Mintoak plans to optimize its cost structure and look for opportunities to increase operational efficiency, which should help reduce losses and move toward profitability in the long term.
4. Innovation in Financial Products: Mintoak will continue to innovate by providing banks and acquirers with more tools to serve SMEs. The platform’s ability to cross-sell financial products like insurance, loans, and other value-added services is expected to become a major growth driver.

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The Future of SME Banking: A Digital-First Approach

Mintoak is a key player in the rapidly growing fintech space, helping reshape how small businesses interact with banks and payment providers. With a robust, scalable platform, a growing merchant base, and strong backing from investors like PayPal Ventures and Z3Partners, Mintoak is set to lead the way in empowering SMEs with the tools they need to grow and thrive in an increasingly digital world.

As small businesses in emerging markets continue to digitize their operations, the demand for seamless digital payment solutions will only increase. Mintoak’s platform is perfectly positioned to meet this demand, and the company’s focus on product innovation, geographic expansion, and customer-centric solutions is likely to keep it at the forefront of the SME fintech space for years to come.

With its strong foundation, promising growth prospects, and commitment to helping businesses scale, Mintoak is ready to make waves in the global digital payments landscape.

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