In the rapidly evolving world of digital payments and financial services, Mintoak Innovation has emerged as a transformative force, bridging the gap between traditional banking systems and the needs of small businesses and merchants. Founded in 2017 by Raman Khanduja, Rama Tadepalli, Kabeer Jain, Sanjay Nazareth, and Rohit Ramana, this Mumbai-based startup has developed a modular, cloud-native, API-first payments platform that is reshaping the way banks interact with merchants across India, Africa, and the Middle East.
A Vision for Empowering Merchants
The inception of Mintoak was driven by a keen observation of the digital payment landscape in India. Back in 2017, there was a significant push for digital payments across the country. Consumers were encouraged to embrace digital transactions, and merchants were compelled to accept these payments. However, the founders of Mintoak quickly realized that the economic burden of this digital payment ecosystem was disproportionately placed on merchants. This realization sparked the idea of creating a platform specifically designed to empower merchants by streamlining their financial operations and enhancing their access to essential banking services.
“We quickly realized that the entire payment ecosystem’s economics were funded by merchants. This led to our ‘aha’ moment—if merchants are funding the ecosystem, why not create a solution specifically for them?” says Rohit Ramana, who brought his extensive experience as an investment banker at JPMorgan and a successful entrepreneur to the founding team of Mintoak.
A Robust Platform for Banks and Merchants
Mintoak’s platform is designed to provide banks with a comprehensive suite of value-added services, including payments, lending, and customer engagement. The platform seamlessly integrates with the existing infrastructure of banks, allowing them to offer a unified, digital-first experience to merchants. This not only simplifies the payment process for small businesses but also helps bridge the long-standing gap between banks and merchants.
“Mintoak’s platform is highly adaptable, allowing banks to customize and deploy solutions that cater to their specific market needs,” explains Ramana. For instance, HDFC Bank’s Smart Hub Vyapar is powered by Mintoak’s platform, enabling merchants to manage payments through QR codes, POS devices, and real-time dashboards. Additionally, the platform facilitates the promotion and distribution of financial products such as loans and insurance, providing merchants with access to crucial business services.
Mintoak’s revenue model is based on multiple streams, including licensing fees from banks, commissions on transaction throughput, fees for distributing financial products, and charges for value-added services. This diversified revenue approach not only ensures profitability but also aligns the company’s growth with the success of its banking partners and merchant clients.
Overcoming Challenges in a Competitive Market
Building a groundbreaking platform like Mintoak was not without its challenges. In the initial years, the startup faced significant hurdles in gaining acceptance from banks and merchants. The concept of a modular, cloud-native platform was new to many potential clients, and convincing them of its advantages over traditional solutions required substantial effort.
“Educating the market about the benefits of a modular, cloud-native platform and demonstrating its advantages over traditional solutions required considerable effort,” recalls Khanduja. “Despite these hurdles, we viewed these challenges as opportunities to showcase our platform’s unique strengths and drive widespread adoption, ultimately reinforcing our position in the market.”
Mintoak’s approach is distinct from traditional payment aggregators, as it partners directly with banks to support their core business functions while providing merchants with a unified platform for all their financial needs. This holistic strategy has set Mintoak apart in the market, positioning it as a first-of-its-kind solution in India.
A Growing Presence in the Global Market
The digital banking market is on a robust growth trajectory, with a report by MarketsandMarkets projecting an increase from $8.7 billion in 2020 to $13.9 billion by 2025 at a CAGR of 9.8%. Mintoak is well-positioned to capitalize on this growth, having already established a strong presence in India and expanding into international markets.
In February 2023, Mintoak raised $20 million in a Series A funding round led by PayPal Ventures, with participation from British International Investment. HDFC Bank, one of Mintoak’s key partners, also increased its stake in the startup to 7.75% from 5.20%, further solidifying the partnership. Other existing investors, including Pravega Ventures, also participated in the round, underscoring the confidence in Mintoak’s business model and growth potential.
“Mintoak allows banks to offer a user-friendly, intuitive payments and commerce platform for merchants in developing nations through SaaS. We look forward to the next stage of Mintoak’s growth journey,” said Ashish Aggarwal, Partner at PayPal Ventures, during the funding announcement.
For FY 2023, Mintoak generated a revenue of Rs 44 crore, a testament to its rapidly growing influence in the digital payments ecosystem.
Future Plans: Expanding Horizons
Looking ahead, Mintoak has ambitious plans to expand its footprint both within India and internationally. “Our strategy is two-fold,” explains Ramana. “Firstly, we focus on making a significant impact on merchants’ lives by continuously developing new products and capabilities, whether in payments or value-added services. We evaluate whether to build these solutions ourselves or partner with others.”
“Secondly, while we have a strong presence in India, our goal is to aggressively expand internationally. We see similar challenges in emerging and developed markets, where fintechs aim to disrupt the payment ecosystem. We believe in partnering with banks to help them stay competitive.”
As Mintoak continues to innovate and scale, it is poised to play a crucial role in the evolution of digital payments and financial services for small businesses and merchants across the globe. The company’s commitment to empowering merchants, coupled with its deep partnerships with banks, positions it as a key player in the fintech landscape, driving meaningful change and delivering tangible value to its customers.
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