Mumbai-based fintech startup Mintoak, backed by PayPal, has acquired Digiledge in a $3.5 million deal, marking the first acquisition in India’s central bank digital currency (CBDC) space. This strategic move is expected to enhance Mintoak’s digital payment capabilities, further solidifying its role in India’s evolving e-rupee ecosystem.

Mintoak, which provides merchant payment solutions to banks, aims to integrate Digiledge’s expertise in CBDC and bill payments into its platform. The acquisition will allow Mintoak to expand its offerings for partner banks, including HDFC Bank, Axis Bank, and SBI, enabling them to provide advanced CBDC-powered transactions to their merchants and customers.

The Reserve Bank of India (RBI) introduced the e-rupee pilot in December 2022, initially involving select banks before extending it to payment firms in April 2023. In recent months, fintech players like Cred and MobiKwik have begun offering CBDC transactions, while major firms such as Google Pay, PhonePe, and Amazon Pay are in the process of securing regulatory approvals to join the initiative.

Mintoak’s CEO, Raman Khanduja, emphasized the strategic significance of the acquisition, stating, “By integrating Digiledge’s capabilities, we are simplifying digital payment adoption for merchant acquirers and SMEs.” The move reflects the growing interest of fintech companies in CBDC adoption, which is expected to play a crucial role in modernizing India’s digital payment infrastructure and accelerating the transition to a cashless economy.