PC: The Kredible
The prominent supply-chain financing startup, Mintifi, recently disclosed notable fiscal year 2024 profits, with the firm generating profit after tax of ₹92.5 crore on revenue of ₹384 crore. In such a scenario, its revenues have grown by an excellent 4X margin during the fiscal year from what the company had achieved last year, when it was reportedly at ₹24.8 crore.
Revenue Growth and Business Model
Mintifi is a company founded in 2017 by Anup Agarwal, Ankit Mehta, and Sanjoy Shome. It offers payment, invoicing, and financing solutions specifically designed for small and medium enterprises (SMEs) in different industries. The revenue from operations of the startup has grown from ₹223 crore in FY23 to ₹384 crore in FY24, which is a significant year-on-year growth.
The interest income from loaned money was the revenue majorly responsible for these increased revenues, accounting for approximately 80% of revenue. The income in this segment doubled in this period to ₹308 crore. Mintifi collected ₹17 crore in the form of interest on the current investments, thus completing the revenue cycle at a figure of ₹401 crore, nearly a 76.6% increase from ₹227 crore in the previous year’s fiscal.
Expenditure and Profitability
While revenue growth has been high, Mintifi’s spends also increased. Employee benefit expenses increased 65% to ₹66 crore, while the inventory procurement cost stood at ₹70 crore. Overall, expenditure for the company increased 44.3% to ₹277 crore, through various operationally incurred expenses such as legal, training, and recruitment.
However, this increase in expense was compensated by the significant growth in revenue, and Mintifi was able to report a phenomenal PAT of ₹92.5 crore. The return on capital employed (ROCE) and EBITDA margins increased to 12.2% and 46.7%, respectively, as the company improved its efficiency and profitability.
Funding and Future Prospects
In December 2024, Mintifi raised $180 million in a Series E funding round co-led by GTV and Prosus, further strengthening its financial position. So far, the company has raised about $340 million, with a current valuation of $850 million. Elevation Capital, Premji Invest, and Lok Capital are some of the notable investors. This fresh capital is likely to be used for expansion and product development.
The startup is operating in a competitive landscape and hence faces competition from other players in the supply chain financing sector, including Vayana Network and FinAGG Technologies. However, Mintifi has differentiated itself by filling gaps in public sector bank lending and thus has built a solid business model centered on solutions for SME financing.
Looking forward, Mintifi’s growth curve may indicate some early stages of planning an IPO in 2025. Its strong financial performance and investors’ confidence place it in a very promising position to become a unicorn and more. The growth in demand for efficient financing solutions will be tapped on by Mintifi, coupled with the effective maneuvering of the competitive landscape.
In summary, Mintifi’s strong financial results for FY24 demonstrate its strength in the supply chain financing sector, underlining its ability to scale operations and enhance profitability. With significant backing from investors and a clear growth strategy, the company is set to make significant strides in the coming years.