Mintoak Raises $20M to Expand Merchant Services Platform

Mintoak has raised $20 million in a Series A funding round for its merchant services platform.

The company said in a Tuesday (Feb. 21) post on LinkedIn that its software-as-a-service (SaaS) offerings connect banks and merchant acquirers with their small and medium-sized business (SMB) customers via white-label solutions with pay-per-use pricing.

Mintoak’s Series A funding round was led by PayPal Ventures with participation from British International Investment, HDFC Bank and Pravega Ventures, the post said.

“Mintoak’s platform is designed to cater to two fundamental realities: merchants want payments, analytics, commerce enablement solutions and seamless access to capital delivered via a single platform, and banks can leverage the trust they command to deliver an entire suite of business solutions to their [SMB] customers by partnering with a FinTech products company,” Mintoak CEO and Co-founder Raman Khanduja said in the post.

PYMNTS research has found that modernizing payments is a critical initiative for financial institutions and corporations of all sizes.

Successful modernization makes B2B payments, cash management and invoice reconciliation less complex and easier to manage and can grant these entities access to supplier portals and real-time reporting on revenue flows, according to “Meeting the Challenge of Payment Modernization: How Organizational Size Influences Innovation,” a PYMNTS and FIS collaboration.

The report also found that just 37% of financial institutions said they have the experience and resources to effectively address B2B payments frictions on their own with no need to outsource the development of required solutions.

With its newly raised capital, India-based Mintoak will ramp up its tech stack, strengthen its existing presence in India and expand into new markets in the Middle East, Africa and Southeast Asia, the company said in the LinkedIn post.

The company’s platform currently enables leading banks in India and international markets such as Africa and the Middle East to serve more than 1.5 million merchants, according to the post.

“Mintoak allows banks to offer a user-friendly, intuitive payments and commerce platform for merchants in developing nations through SaaS,” PayPal Ventures Partner Ashish Aggarwal said in the post. “We look forward to the next stage of Mintoak’s growth journey.”