Mintoak Expands Their Offering with Digiledge, Bringing CBDC and Bill Payment Capabilities

Digiledge, a Bengaluru-based fintech SaaS platform, was purchased by Mintoak to expand its digital payments platform to include bill payment and Central Bank Digital Currency (CBDC) solutions. The financial business will function as a Mintoak subsidiary after the acquisition, which was completed in an all-cash transaction. The deal's magnitude was not revealed, though. According to a statement from Mintoak, the acquisition will enhance its merchant payment services by including CBDC and bill payments. Banks can future-proof their payment ecosystems and give SMEs an omnichannel payment experience by integrating CBDC acceptance into merchant platforms.

How Mintoak Operates?

Established in 2017 by Raman Khanduja, Rama Tadepalli, and Sanjay Nazareth, Mintoak collaborates with banks to digitise merchants and small companies by enabling them to take all payment methods via their mobile devices, including UPI, QR codes, and cards. Additionally, it offers merchants commerce enablement solutions. The Mumbai-based business collaborates with banks in six South Asian, African, and Middle Eastern nations. Among its partners are HDFC Bank, SBI, Yes Bank, and Axis Bank. It claims to have $50 billion in gross merchandise value (GMV) annually, 3 billion transactions annually, and over 3 million merchants.

Collaboration Aims to Foster New Opportunities

Govind, the CEO and cofounder of Digiledge, commented on the purchase, saying that Digiledge would be able to operate at scale and enter foreign markets thanks to the partnership with Mintoak. Through this collaboration, Digiledge is able to provide greater value and assist the global SME ecosystem.

Some of the top banks in southern India, including Federal Bank, Karnataka Bank, Canara Bank, Indian Bank, and CSB Bank, are partners of Digiledge. Since Mintoak can now offer its solutions to much larger institutions, Digiledge has a much greater canvas to work with, according to Khanduja, a co-founder of Mintoak. Mintoak wishes to provide Digiledge the freedom to operate the company as they have been doing and all the financial backing they need to compete on a bigger scale. According to him, Mintoak now wants to increase its market share in the Middle East, Africa, and Southeast Asia.

In 2017, Mahesh Govind and Chandni Mahesh created Digiledge as well. It claims that its bill payments and CBDC stack improve payment infrastructure and digitise financial workflows, and it provides blockchain solutions for financial services.

Mintoak Financial Outlook

According to Khanduja, the startup's financial performance in the fiscal year 2023–2024 (FY24) was INR 83 Cr, and it is expected to achieve a 35–40% YoY increase in sales in FY25. The purchase was made a few months after Mintoak closed a secondary deal at INR 71 Cr, or about $8.2 million. The Mumbai-based startup's original backers, HDFC Bank and Pravega Ventures, sold shares to early-growth technology investor Z3Partners during the round. Together with its current backers, PayPal Ventures led Mintoak's $20 million Series A fundraising round in 2023.