Software-as-a-Service (SaaS) platform Mintoak, which specialises in merchant services, has secured $20 million, including participation from PayPal Ventures, British International Investment, and current investors HDFC Bank and Pravega Ventures.
The Mumbai-based business claimed that HDFC Bank increased its equity through its investment from 5.20% to 7.75%.
In a stock exchange statement from December, HDFC Bank made the fundraising announcement.
White Whale Partners and other institutional investors participated in the round, it was reported. The UK government’s development financing organization, British International Investment, was formerly known as the CDC Group.
India, Africa, and the Middle East are all locations where Mintoak does business.
It collaborates with lenders including HDFC Bank and State Bank of India to provide digital lending, engagement, and payment software solutions to the banks’ merchant clients.
Because the top banks are with us in India, “We will focus disproportionately outside of India. Raman Khanduja, co-founder and CEO, said ET in an interaction that it is now time to push what we established for India outside of India.
Before launching their own company, cofounders Khanduja, Rama Tadeppalli, and Sanjay Nazareth held executive positions at Visa in India and Southeast Asia.
The 2017-founded company intends to use the most recent funding to expand its product offering while also building out its technology stack.
“The overall proposal is appealing to banks because to Mintoak’s modular platform with pay-per-use pricing, which is white-labeled for each financial partner. I am honoured that some of the most reputable brands in the world have confidence in our product, people, and delivery stated Khanduja.
Khanduja said to ET that Mintoak depends on merchants that have current accounts set up in partner banks and that it has partnerships with HDFC Bank, State Bank of India, Yes Bank, an unidentified bank in India, Burgan Bank in Kuwait, and Absa Bank in Africa for now.
Without interfering with their own commercial models, Mintoak helps banks monetize their connections to merchants. The bank provides the merchants’ current account and Mintoak’s product as a value-added solution.
Almost 1.5 million merchants are supported by the platform.
The greatest revenue source for Mintoak at the moment is HDFC Bank, which joined its cap table in October 2021. In May 2020, Pravega Ventures led a Rs 15 crore funding round for Mintoak.
“PayPal uses technology to improve financial services and commerce for millions of businesses, making them more accessible, affordable, and secure. Similar to Mintoak, PayPal Ventures partner Ashish Aggarwal stated in a statement that it enables banks to provide a user-friendly, intuitive payments and commerce platform for businesses in underdeveloped countries through SaaS.
In July 2021, logistics aggregator Shiprocket received $41.3 million in funding from PayPal Ventures, the venture capital division of payments giant PayPal, based in San Jose, California.
