Z3Partners, a venture capital firm that makes early- and growth-stage investments primarily in technology companies, is picking up a minority stake in software-as-a-service platform Mintoak Innovations.
Z3Partners is investing Rs 71 crore (about $8.3 million) to acquire the stake from some of Mintoak’s initial institutional investors, the fintech startup said in a statement. It didn’t disclose the names of the selling investors.
The announcement comes just weeks after VCCircle reported in December that HDFC Bank and Pravega Ventures were looking to partially exit Mintoak in a new investment round that could be worth around Rs 70-80 crore. VCCircle also reported at the time that the new round could value the startup around $300 million.
The company’s previous fundraise was in February 2023, when it secured $20 million in Series A funding at a pre-money valuation of around $100 million. The round was led by PayPal Ventures with participation from British International Investment, White Whale Venture Fund, and existing investors HDFC Bank and Pravega Ventures.
HDFC Bank, India’s largest private-sector lender, holds an over 7% stake in the SaaS firm that mainly caters to banks and merchant acquirers. HDFC Bank had invested Rs 31 crore in the startup in 2022, lifting its stake to 7.75% from 5.20% earlier. In 2020, the company raised around Rs 15.14 crore in a pre-Series A round led by Pravega.
Mintoak enables merchant acquirers to monetize their SMEs with payments and commerce enablement solutions. The company’s platform drives small and medium-sized enterprises engagement for acquirers. It says it enables over $50 billion in annual gross merchandise value and processes over $3 billion in transactions on an annual basis. The company’s clients include HDFC Bank, State Bank of India, Axis Bank and YES Bank in India, and global entities like Absa Bank, Network International, Burgan Bank, Ahli United Bank, and NMB Bank.
