World Bank arm IFC to invest $8 million in equity in lending firm Mintifi

International Finance Corporation (IFC) has proposed to invest up to $8 million in equity in Mintifi, a tech-driven distributor/dealer financing platform. The company also has an impact investment fund as an investor.

The World Bank's investment arm said that the investment would enable the company to grow and scale its business.

Mintifi will benefit from IFC's equity investment, enabling the company to prepare for growth by improving capacity and raising funding for on-balance sheet lending. Significant non-financial additionality will be provided through IFC advisory services supporting the company in its investment in data capabilities, risk management and governance to prepare for growth, said IFC.

The project would help provide uncollateralised small-sized working capital credit MSMEs to effectively reach underserved segments. 

Beyond the investment, IFC anticipates that the investment will promote systemic changes in the market by demonstrating the validity of a specialised, technology- and anchor-driven business model as a way to reach large segments of excluded MSMEs. It will also enable financial service providers to effectively lend to these segment through its platform, said IFC.