• Mintoak’s acquisition of Digiledge marks India’s first e-rupee-related deal, valued at approximately $3.5 million.
  • The deal enables Mintoak’s partner banks, including HDFC Bank, Axis Bank, and SBI, to offer enhanced CBDC-related payment solutions.

Indian fintech startup Mintoak has completed the acquisition of Digiledge in a landmark deal within the central bank digital currency (CBDC) sector, sources revealed.

The transaction, valued at approximately $3.5 million, marks the first acquisition in India’s nascent e-rupee space.

Mintoak, which specializes in providing merchant payment solutions to banks and lenders, is backed by global payments giant PayPal and HDFC Bank.

The startup announced the acquisition on Tuesday, stating that the integration of Digiledge’s expertise in CBDC and bill payments services will enhance its offerings to partner banks.

These include major financial institutions such as HDFC Bank, Axis Bank, and the State Bank of India (SBI).

The Reserve Bank of India (RBI) launched a pilot program for the e-rupee in December 2022, aiming to introduce a digital alternative to physical currency. Initially restricted to banks, the program was expanded in April 2023 to include payment firms.

The latest acquisition by Mintoak is expected to accelerate CBDC adoption by allowing partner banks to provide more comprehensive digital payment solutions to their clients.

"By adding Digiledge's bill payments and CBDC capabilities, we are making it easier for merchant acquirers to grow and help more small and medium enterprises access digital tools and financial services," said Mintoak CEO Raman Khanduja.

The move follows increasing fintech interest in the e-rupee ecosystem. In January, Cred and MobiKwik became the first fintech platforms to offer customers access to the CBDC.

Meanwhile, major players such as Google Pay, Walmart-backed PhonePe, and Amazon Pay are seeking to join the pilot, according to an earlier Reuters report.

Mintoak’s acquisition of Digiledge is a significant step in India’s digital currency landscape, potentially paving the way for greater merchant and consumer adoption of the e-rupee.

Edited by Annette George