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.
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.
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.