Mintoak Acquires Digiledge to Expand Invoice Payment Services
Mumbai-based fintech startup Mintoak, which provides payment solutions for offline merchants associated with major banks, has established a ₹200 crore fund to acquire companies that offer complimentary services to small businesses.
Strong Support from Prominent Investors
The startup, backed by Pravega Ventures, HDFC Bank, and PayPal, has successfully completed its first acquisition in the invoice payment sector. Mintoak has acquired fintech startup Digiledge, which specializes in invoice payment systems and digital currency services including Central Bank Digital Currency (CBDC).
Integration and Future Expansion
Following the acquisition, Digiledge will operate as a wholly-owned subsidiary of Mintoak. Raman Khanuja, Managing Director of Mintoak, stated that the company has been profitable for a significant period and intends to leverage the profits generated from its core payment services to expand into adjacent digital domains through acquisitions.
Enhancing Retail Payment Solutions
Mintoak powers the HDFC Bank Smarthub Vyapar application and collaborates with institutions like Axis Bank and State Bank of India (SBI) to enhance their retail payment offerings through QR code technology. Mintoak’s innovative software solutions aid banks in competing with market leaders like PhonePe, Paytm, and BharatPe in the burgeoning QR code payments ecosystem.
Supporting Invoice Payment Systems
Khanuja emphasized that Digiledge, which has not pursued institutional funding, offers essential systems for managing invoice payments that can be seamlessly integrated into Mintoak’s application for merchants. The startup also collaborates with various lenders including Federal Bank, Karnataka Bank, Indian Bank, and Canara Bank.
Financial Performance and Future Goals
Mintoak has reported a successful financial year, closing FY2024 with a net profit of ₹21 crores and a total revenue of ₹83.8 crores. The company operates an annualized income rate of ₹120 crores, serving approximately 3 million merchants and facilitating around ₹30,000 crores in transactions each month.
Global Expansion and CBDC Adoption
In addition to pushing for growth in India, Mintoak has expanded its reach internationally, working with banking partners in Kuwait, the United Arab Emirates, Tanzania, and Mauritius. While invoice payments mark Mintoak’s initial focus for integration through acquisition, the company plans to utilize Digiledge’s capabilities to enable merchants to accept digital currency formats, particularly as CBDC adoption gains traction in India.
Khanuja noted, “Although the adoption of CBDC in India is still in its infancy, there is an emerging interest in international markets. Thanks to CBDC acceptance capabilities, banks can enhance their market applications effectively.”