Mintoak Innovations, a payment platform for merchants, has received Rs 31 crore ($3.8 million) from HDFC Bank, according to a regulatory filing on Wednesday.

HDFC will acquire a 7.75 per stake in the Mumbai-based fintech startup as part of this transaction. According to the filing, HDFC will subscribe to 21,471 fully paid-up compulsory convertible preference shares (CCPS) with a face value of Rs 20 each at a premium of Rs 9,711.

The lender will purchase 10,538 shares of the company from existing shareholders.

The transaction is expected to close by January 31, 2023, pending the completion of the conditions precedent. The transaction will not require regulatory approval because the bank's overall stake will remain less than 10% after the transaction.

Mintoak was founded up by Raman Khanduja, Rama Tadepalli and Sanjay Nazareth in 2017. The platform provides a payments-led platform offering value-added services to merchants for engaging with their customers.  

It offers PoS (point of sale) machines to help merchants to accept all modes of digital payments, such as cards and UPI.

With this acquisition, HDFC intends to enhance its digital offering with the merchants  across its marketplaces. In the current fiscal year. Mintoak recorded an operating income of Rs 11.28 crore. ts profit after taxes stood at Rs 1.47 crore.  

Prior to this round, the company, in May 2020, raised about Rs 15.14 crore in a pre-Series A funding round led by Pravega Ventures. 

According to a regulatory filing on Wednesday, Mintoak Innovations, a payment platform for merchants, has received Rs 31 crore ($3.8 million) from HDFC Bank.

As part of this transaction, HDFC will acquire a 7.75% stake in the Mumbai-based fintech startup. According to the filing, HDFC will pay a premium of Rs 9,711 for 21,471 fully paid-up compulsory convertible preference shares (CCPS) with a face value of Rs 20 each.

The lender will buy 10,538 shares of stock from existing shareholders.

Depending on the completion of the conditions precedent, the transaction is expected to close by January 31, 2023. Because the bank's overall stake will remain less than 10% after the transaction, regulatory approval will not be required.