HDFC to acquire 7.75% stake in fintech startup Mintoak for Rs 31 Cr
Private sector lender HDFC Bank has acquired a minority stake in fintech startup Mintoak Innovations Private Limited for a cash consideration of Rs 31.1 crore, the bank said in a regulatory filing on Wednesday.
The deal is likely to be completed by January 31, 2023, subject to conditions precedent.
“We wish to inform you that HDFC Bank Limited has executed agreements on December 13, 2022, to subscribe to 21,471 fully paid-up Compulsory Convertible Preference Shares (CCPS) of the face value of Rs 20 each at a premium of Rs 9,711 for an aggregate consideration of Rs 9,731 per CCPS to be issued by Mintoak Innovations Private Limited,” the filing said.
HDFC Bank will purchase 10,538 fully paid-up equity shares of Mintoak for an aggregate consideration of Rs 9,731 per share from certain existing shareholders of Mintoak. In 2021, the bank invested Rs 10.3 crore in Mintoak and acquired 5.3% stake in the company on a fully diluted basis.
Citing the objective of the deal, the bank informed, saying, “Financial investment in a growing fintech startup offering payments and value-added services to merchants and enhancing acquirers’ digital engagement with merchants.”
Fintech startup Mintoak, founded in 2017, provides an API-first payments-led platform that allows banking partners to deploy and scale value-added services like lending, payments, and engagement to their customers and merchants.
Mintoak clocked a turnover (operating income) of Rs 11.28 crore in FY22, up from Rs 1.76 crore in FY21, while the PAT stood at Rs 1.47 crore. The startup raised Rs 16.5 crore in a seed funding round in 2020 and has served around five lakh merchants across four banks in India.
HDFC had tied up with Mintoak to create an ecosystem for MSMEs, starting with payments. Its white-labelled solution SmartHub Vyapar has been developed by the fintech to deliver payment acceptance and access to commerce enablement solutions for the merchant in one place.
Shares of HDFC Bank were trading at Rs 1664.60 a piece on BSE and at Rs 1665 at NSE on Wednesday.
(The story was updated with additional information on previous acquisition)
Edited by Suman Singh