HDFC Bank To Acquire 7.75% Stake In Fintech Start-Up Mintoak – Here’s All You Need To Know
HDFC Bank has announced that it has acquired a minority stake in fintech start-up Mintoak Innovations Pvt. Ltd.
HDFC Bank has announced that it has acquired a minority stake in fintech start-up Mintoak Innovations Pvt. Ltd. for a cash consideration of ₹31.14 Crore.
In a regulatory filing on December 14, 2022, the private sector lender informed “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 face value of ₹20 each at a premium of ₹9,711 for an aggregate consideration of ₹9,731 per CCPS to be issued by Mintoak Innovations Private Limited and to purchase 10,538 fully paid up Equity Shares of face value of ₹10 each at a premium of ₹9,721 for an aggregate consideration of ₹9,731 per Equity Share from certain existing shareholders of Mintoak," HDFC Bank informed via a regulatory filing.
The deal is expected to be completed by January 31, 2023, subject to conditions precedent. After the transaction is completed, HDFC Bank will hold a 7.75% stake in Mintoak Innovations Pvt. Ltd. Since the overall stake of the lender post-transaction will be less than 10%, the deal will not require regulatory approval.
HDFC Bank has said that the rationale behind this acquisition is to invest in a growing fintech start-up that offers payments and value-added services to merchants and enhances the digital engagement of acquirers with merchants.
In October 2022, the lender launched the HDFC Bank SmartHub Vyapar Merchant app, which it developed along with Mintoak. The HDFC Bank SmartHub Vyapar Merchant app is a banking solutions and payments app for small and medium-sized businesses. The app enables merchants to accept payments through multiple payment modes including cards, UPI, and QR codes.
About Mintoak Innovations Private Limited
Mintoak Innovations Pvt. Ltd. is a fintech start-up which is involved in the business of providing a payments-led platform that offers value-added services to merchants to engage with their customers and for acquirers to enhance their engagement with merchants through digital engagements and value-added solutions.
The annual turnover of Mintoak Innovations Pvt. Ltd. increased from ₹60 Lakh in 2020 to ₹11.28 Crore in 2022. In its seed round of funding in 2020, the fintech company raised $20 Million (₹16.5 Crore). Mintoak currently serves approximately 5,00,000 merchants across four banks in the Middle East and India and intends to add 1.5 Million users by FY 2023.