Indian fintech startup Mintoak, backed by PayPal and HDFC Bank, has made a significant move in the fintech sector by acquiring Digiledge for approximately $3.5 million.
According to a report from Reuters, this acquisition marks a milestone as the first-ever purchase in India’s emerging central bank digital currency (CBDC) space. It underlines Mintoak’s plan to expand digital payment solutions for merchants and banks.
Why Mintoak?
Mintoak, a company specializing in merchant payment services for financial institutions, now integrates Digiledge’s expertise in CBDC and bill payments.
The acquisition allows Mintoak’s partner banks—including HDFC Bank, Axis Bank, and the State Bank of India (SBI)—to enhance their offerings in India’s digital rupee ecosystem.
CEO Raman Khanduja emphasized the importance of this acquisition, saying:
“We are making it easier for merchant acquirers to grow and helping more small and medium enterprises access digital tools and financial services.”
India’s central bank, the Reserve Bank of India (RBI), launched its pilot for the e-rupee in December 2022, initially limiting its use to banks.
In April 2023, the program was extended to include payment firms. Despite this expansion, adoption has remained slow, with just one million retail transactions recorded by mid-2024.
Banks attempted to accelerate usage through incentives, including partial salary disbursements in digital rupees, but challenges persist in widespread acceptance.
The RBI had initially pushed for one million daily transactions by the end of 2023 to test scalability.
However, this goal has not been met, leading to uncertainties about the initiative’s future.
The acquisition of Digiledge suggests that Mintoak is positioning itself at the forefront of digital currency innovation. It hopes to bridge the gap between traditional banking services and emerging digital financial solutions.
A Resurgent Crypto Market: Coinbase Eyes India Again
Mintoak’s acquisition comes as India’s broader cryptocurrency and digital asset sector is experiencing renewed momentum.
U.S.-based crypto exchange Coinbase is reportedly preparing to re-enter the Indian market after a period of regulatory challenges and operational setbacks.
Coinbase initially launched services in India in April 2022 but quickly encountered regulatory roadblocks.
By September 2023, Coinbase had completely exited the Indian market, citing challenges in adhering to evolving regulations.
However, recent reports indicate that Coinbase is engaging with Indian authorities on a possible return.
Similarly, Bybit, a leading global cryptocurrency exchange, has officially resumed operations in India after securing registration with the FIU and resolving previous compliance issues.
The exchange had initially faced regulatory roadblocks, leading to a temporary suspension of services.
In January 2025, Bybit was fined approximately $1.06 million (9.27 crore rupees) for violating India’s Prevention of Money Laundering Act (PMLA).
Following this, its website was blocked under the Information Technology Act.
After settling the fines and registering with the FIU, Bybit has restored full access to its services, allowing existing users to trade while gradually onboarding new customers.
India Is Changing Stance on Digital Assets
The Indian government has historically been skeptical of cryptocurrencies due to concerns about money laundering and financial stability.
Despite stringent regulations, India remains a key market for crypto exchanges due to its vast population and increasing adoption of digital assets.
Analysts predict that the Indian crypto market, valued at $2.5 billion in 2024, could grow to over $15 billion by 2035, reflecting an annual growth rate of 18.5%.
For now, Mintoak’s acquisition of Digiledge is a massive step in India’s CBDC journey. It could accelerate the digital rupee adoption among merchants and financial institutions.
If this proves to be a success, the government might also start exploring Digital assets options.
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