Mintos, the Latvian fintech that operates a global loans marketplace to let you invest in loans from various loan originators, has raised €5 million in Series A funding. Backing the startup once again is the Riga-based venture capital firm Grumpy Investments (previously known as Skillion Ventures). More noteworthy, the new capital will be used to launch a Mintos banking account and debit card, significantly expanding the company’s offering.
“Both banking account and the card in our opinion is a natural step in our journey of revolutionising financial services through technology and serving our investors and will nicely complement our current offering of investments in loans, and low-fee mid-market rate currency exchange,” Mintos co-founder and CEO Martins Sulte tells me. “This development also means that, theoretically, our investors won’t need their banks anymore”.
The Mintos banking account will act like any other IBAN account. You’ll be able to receive a salary into your Mintos account, use it to get paid by companies, or receive money from friends. And of course you’ll be able to transfer money out of your Mintos account, just like a regular bank account.
Sulte says the idea behind plans to launch a Mintos banking account, and the reason why the company is applying for a European e-money license, is to improve the overall Mintos experience. This includes making it quicker to access money generated by the loans you have invested in (which is held by Mintos on your behalf) and easier to invest on a regular basis.
“The card will allow investors to access the money they hold on the Mintos account instantly by paying at their local grocery shop or online or withdrawing money at ATMs; basically use the card like any other bank card,” he says. “They will no longer need to request a withdrawal from the platform to their bank account and wait up to two days for their money to arrive”.
The fintech startup claims a customer base of 87,000 investors from 71 different countries. In addition to launching the Mintos banking account, it will use the additional funding for further geographical expansion, including Latin America, Africa, and Southeast Asia. The company will also invest in acquiring more customers, and plans to significantly expand the size of its 60 person team. Notably, Mintos has been profitable since January 2017.
To that end, the fintech says it has already facilitated more than €1 billion in investments in loans through its marketplace since launching in 2015. It says investors in total have earned €26.7 million in interest through loans to individuals and businesses and have attained an average net return of nearly 12 percent.
Source: New feed