Mintoak, an Indian startup that provides merchant payment services to lenders, announced on Tuesday that it had acquired Digiledge, marking the first acquisition in the nascent central bank digital currency space, in a deal valued at around $3.5 million.

The Reserve Bank of India launched a pilot for the CBDC, or e-rupee, a digital alternative to physical currency, in December 2022, and last April expanded the scope of transactions to include payment firms after initially limiting it to banks.

PayPal and HDFC Bank-backed Mintoak has completed the acquisition of Digiledge, which specializes in CBDC and bill payment services, according to two sources familiar with the matter, who declined to be identified because they are not authorized to speak to the media.

Mintoak's partner banks, which include HDFC Bank, Axis Bank, and SBI, will be able to offer their clients more comprehensive CBDC-related payment solutions as a result of the agreement, according to the Mumbai-based company.

"By adding Digiledge's bill payments and CBDC capabilities, we are making it easier for merchant acquirers to grow and help more small and medium enterprises access digital tools and financial services," Raman Khanduja, CEO of Mintoak, said.

Cred and MobiKwik became the first fintech platforms to offer CBDC access to customers in January.

According to Reuters in August 2024, payment firms interested in participating in the pilot include Alphabet's Google Pay, Walmart-backed PhonePe, and Amazon Pay.