Last Updated on April 27, 2022
Tiger Global Management and Kaszek led a $24 million investment round for Bogota-based payments infrastructure firm Minka.
CEO and co-founder Domagoj Rozic called Minka “a seamless payment network created from the bottom up” in an interview. Through blockchain principles and APIs, this network was built to link older systems “to facilitate the movement of complicated money flows.”
To put it another way, Minka seeks to enable institutions like banks and clearinghouses to “publish” and transfer money in real time by exposing their “locked, outmoded core systems” to the Internet.
According to Rozic, “This in turn allows them to collect, transmit, or swap money in real time without the need for reconciliation and with nearly no expense.”
The firm has already made an effect in Colombia. As part of the Transfiya initiative, it collaborated with ACH Colombia to provide API access to 80 percent of Colombia’s bank accounts. According to Rozic, this is the biggest open banking initiative in the area.
In an interview, he remarked, “We intend to link the world’s balances across the internet utilising shared, connected ledgers.” It has been demonstrated that this can be done and has become one of the fastest-growing real-time payment networks in the area, allowing previously sluggish money to flow rapidly and at a small cost.”
About two million individuals use this initiative to transmit money merely by phone number.. now… According to Rozic, Minka has 20 financial institutions and fintechs linked directly to its platform, with another 20 in the process of integration.
Our platform’s active users, institutions, and transactions are all being tracked by the startup. A year-over-year increase of 250 percent in transactions and users has been reported by Rozic throughout 2022, which is an increase of 20 percent every month.
To he said, “As our business is transactional SaaS, the revenues have also increased.”
With its additional funding, the business also wants to continue “modernising” the clearinghouse and central bank infrastructure. A self-service interface for publishing and transferring money to organisations that supports one-click purchases, payments, and collections will be developed to expand the network.
Clearinghouses and financial institutions make up the majority of Rozic’s clientele. “However, we will soon provide a self-service SaaS to fintechs as a result of raising more funding.”
There is now an open network being built to help spread the advantages of this technology throughout the globe, he said.
The term Minka is derived from a Quechua phrase that means working together for the benefit of the whole community.
When Rozic first arrived in Colombia five years ago, he was motivated to create Minka.
TechCrunch quotes him as saying: “I realised I could send a picture to her grandparents in Croatia for free, and using simply their phone number.” “However, if I wanted to transfer 5,000 pesos to a neighbour across the street, I would have to wait two days and wind up owing the bank money.”
The goal of Rozic and Paola Sanchez’s collaboration was to create a new payments network for cash-based economies that would allow money to move just as freely as information does.
In the beginning, it wasn’t the idea at all. For the first several months of 2018, Minka was primarily an R&D firm focused on developing a new payment mechanism. By winning an RFP to automate Colombia’s payments infrastructure, it had communication with the central bank as well as the local ACH.
Latin American nations including the Dominican Republic, Bolivia, and Mexico will soon benefit from the company’s efforts to improve their payment systems.
In the Dominican Republic, Mastercard and Google worked with Minka to present the business to a customer. In addition, Mastercard has invested in the business.
Using a referral scheme, we’re expanding our network to other areas, Rozic said in an interview with TechCrunch. “These firms serve as an extension of Minka’s sales force, and they are able to come to market quicker with real-time payments. In Latin America, this kind of payment infrastructure-as-a-service is uncommon. What we’re going for is a system that everyone uses but no one sees, driven by Minka.
With a workforce of roughly 30 people in Croatia and Colombia, Minka is one of the fastest-growing companies in the world today.
According to Tiger Global Partner Alex Cook, Minka’s objective is to “create the open infrastructure for money,” and his company is willing to help.
According to a statement, “The successful rollout of Transfiya in Colombia underlines the strength of the Minka team and we anticipate them to continue the acceptance of real-time payments internationally.”
Investors that had previously contributed to the seed round in 2021 included FinTech Collective. A total of $27.5 million has been invested in the firm so far.
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