Mintoak Raises Rs 71 Crore to Revolutionize Merchant Payments: What You Need to Know
Mintoak, a rising star in the world of merchant SaaS platforms, has just raised Rs 71 crore (about $8.2 million) in a secondary funding round led by Z3Partners. This fresh capital will fuel the company’s expansion plans and push its product development forward. So, why is everyone talking about this Mumbai-based startup, and how is it revolutionizing payments for small and medium-sized enterprises (SMEs)?
Let’s dive into what makes Mintoak tick and how it’s poised to reshape the financial landscape for millions of merchants.
What Exactly Is Mintoak?
Mintoak, founded in 2017 by Raman Khanduja, Rama Tadepalli, and Sanjay Nazareth, is a merchant SaaS platform that helps banks and financial institutions offer digital solutions to small businesses and merchants. It focuses on providing easy-to-use software solutions that empower small and medium-sized enterprises (SMEs) to run their operations more efficiently.
The platform offers a range of services, including digital payments, cross-selling financial products, and launching loyalty programs for customers. But it’s not just any payment solution—Mintoak has crafted a suite of tools that integrate seamlessly with existing banking systems, allowing merchants to manage their payments and grow their businesses without complex software or systems.
With clients like HDFC Bank, SBI, YES Bank, Axis Bank, and international giants such as Absa Bank and Network International, Mintoak is already working with some of the biggest names in the banking industry to drive financial inclusion for merchants.
Major Milestone: The Latest Funding Round
Mintoak’s Rs 71 crore funding comes at a crucial time in the company’s growth journey. The round was led by Z3Partners, who now hold a minority stake in the company. In return, Z3Partners acquired a portion of the shares from some of Mintoak’s early investors, though the names of those investors weren’t disclosed.
This isn’t the company’s first big funding round. In February 2023, Mintoak raised $20 million in a Series A round led by investors like PayPal Ventures. So far, Mintoak has raised Rs 192 crore (almost $25 million) in total, a clear signal that investors have strong confidence in its product and potential.
What makes this secondary round special is the strategic backing of Z3Partners, which will help Mintoak accelerate its growth, expand its platform capabilities, and move forward with its global expansion plans.
Mintoak’s Market Reach: Serving Millions of Merchants Across Borders
So, what exactly is Mintoak’s reach? Well, it’s global. The platform is used by more than 3 million merchants across six countries, including regions in South Asia, Africa, and the Middle East. The company facilitates transactions worth over $50 billion every year—a huge number that underscores its impact in the market.
In India, Mintoak claims to serve over 1.5 million merchants through leading banks. That means whether it’s a mom-and-pop shop in Delhi or a growing e-commerce business in Mumbai, Mintoak’s solutions help businesses streamline payments, improve cash flow, and access new financial services.
Despite growing its revenue by a healthy 70% in FY 2024 (reaching Rs 72.59 crore from Rs 42.3 crore in FY 2023), Mintoak still faces challenges. Its losses reportedly doubled to Rs 21.45 crore during the same period, signaling that while the company is growing fast, it’s still working on achieving profitability.
What Will the Rs 71 Crore Funding Be Used For?
With this new funding in hand, Mintoak is accelerating its growth plans. So, what will the company do with the Rs 71 crore raised in this round?
- Expand Product Capabilities: The company plans to enhance its platform and build out new tools to help banks and merchant acquirers better serve SMEs. This could include adding more financial services, improving user interfaces, and offering customized solutions for different sectors.
- Global Expansion: As mentioned, Mintoak already has a presence in South Asia, Africa, and the Middle East. With this fresh infusion of capital, the company is looking to expand its footprint into new regions. Expect Mintoak to make a push into other fast-growing markets where SMEs need digital solutions.
- Customer Acquisition: Mintoak wants to grow its merchant base by continuing to work closely with major banks like HDFC, YES Bank, and Axis Bank. The company’s platform has already made a mark in India with over 1.5 million merchants, but now it’s looking to expand its presence even further and acquire new clients through more bank partnerships.
- Technology and Innovation: Mintoak is focused on continuous innovation. Whether it’s improving its payment solutions, adding new digital products, or exploring AI-driven tools, the company is constantly working to stay ahead of the curve and meet the evolving needs of its SME customers.
How Does Mintoak Benefit Banks and SMEs?
Mintoak isn’t just a platform for merchants; it’s a game-changer for banks too.
- For Banks: Mintoak provides banks with an easy way to engage with SMEs and offer a range of financial services. Whether it’s facilitating payments, cross-selling products like loans, or offering loyalty programs, Mintoak’s platform helps banks reach a new customer base while keeping costs low and processes efficient.
- For SMEs: Small businesses often struggle with financial inclusion, limited access to banking services, and inefficient payment systems. Mintoak helps bridge this gap by offering affordable and scalable digital solutions that simplify payment collection, improve cash flow, and even enable access to new financial products like loans or insurance.
The Future of Mintoak: What’s Next?
Mintoak is in a strong position to continue its growth trajectory. The latest funding will allow the company to ramp up its global expansion, expand its platform’s features, and attract more banks and merchants to its ecosystem. As more small and medium-sized businesses go digital and embrace financial technology, Mintoak is set to become a key player in this transformation.
In the years to come, Mintoak could emerge as a leading merchant platform in India and beyond, offering cutting-edge digital solutions to millions of businesses in emerging markets.
With this latest round of funding, Mintoak is not just ready to expand its reach—it’s ready to reshape the future of SME finance. Investors, banks, and entrepreneurs alike will be keeping a close eye on how the company capitalizes on this opportunity.
