HDFC Bank acquires minority stake in fintech startup Mintoak

HDFC Bank has acquired a minority stake in fintech startup Mintoak for a cash consideration of Rs 31.1 crore or $3.7 million, the bank said in a regulatory filing.

The Bank will 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.

HDFC will hold a 7.75% stake in Mintoak post-transaction. For the uninitiated, the bank is an existing investor in the Mumbai-based startup.

HDFC Bank will also purchase 10,538 fully paid-up equity shares of the face value of Rs 10 each at a premium of Rs 9,721 for an aggregate consideration of Rs 9,731 per equity share from certain existing shareholders of Mintoak, according to the statement. 

The deal is likely to be completed by January 31, 2023.

Founded by Raman Khanduja, Rama Tadepalli, and Sanjay Nazareth in 2017, Mintoak offers value-added services to merchants for engaging with their customers and for acquirers to enhance their engagement with merchants. Besides India, it has a presence in Kuwait and Mauritius.

The startup had raised $2 million in its pre-Series A round led by Pravega Ventures back in May 2020.

For the fiscal year ended on March 31, 2022 (FY22), Mintoak had a turnover of (operating income) Rs 11.28 crore with a profit after tax of Rs 1.47 crore. In the previous two fiscal years, its revenue stood at Rs 1.76 crore and Rs 0.60 crore respectively.