HDFC Bank Acquires 7.5% Stake In Fintech Startup Mintoak
HDFC Bank has purchased a minority stake (7.5%) in fintech or payment startup Mintoak for a cash consideration of ₹31 crore ($3.7 million). The deal will be completed by 31st Jan, 2023.
HDFC Bank has purchased a 7.75% share in Mintoak fintech startup. The stake will be acquired by the bank at $3.7 million (INR 31.14 Cro).
According to regulatory filings HDFC Bank was allotted 21,471 fully-paid-up Compulsory Convertible Preference shares (CCPS) as well as 10,538 fully-paid-up equity shares at an INR 9,731 per share.
The deal must be completed by 31 January 2023. The bank stated that HDFC Bank’s Mintoak shareholding will be less than 10% of the startup’s total share capital. This deal is not subject to regulatory approval.
This development comes a month after HDFC Bank sold approximately 3.21% stake in Fintech startup Lentra. The bank sold 73.941 equity shares at INR 7,326 per share in the fintech startup.
HDFC Bank shares were trading at INR 1,662.80 as of the filing date on Bombay Stock Exchange.
Mintoak, a fintech startup based in Mumbai, was founded by Raman Khanduja and Rama Tadepalli. Mintoak connects small and medium-sized businesses (SMEs) with commercial banks by allowing merchants to accept any type of payment form.
Mintoak helps banks increase their engagement with SME merchants through digital engagement and value-added service.
According to filings, Mintoak had a turnover of INR 1128 Cr in 2022, and previously, it had a gross revenue in 2021 of INR 1.76 Cro.
Mintoak received $2 million in Pre-Series A funding from Pravega Ventures in 2020.
HDFC Capital, a subsidiary of HDFC Group, announced in November plans to support 15 Indian proptech startups.
In August, HDFC Bank, a banking arm of HDFC Bank, stated that it would invest between INR 49.9 Crore and INR 69.9 Crore in Go Digit Life Insurance. This was for an equity stake close to 9.94%.
HDFC announced in June that it would overhaul digital services and partner with tech startups to offer services like a payment platform for consumers.