Indian ecommerce startup Mintoak has acquired Digiledge for $3.5 million, marking the first acquisition in India's central bank digital currency (CBDC) area.
India's First CBDC Acquisition
According to Reuters, Mintoak has made India's first CBDC-related acquisition by buying Digiledge, a firm specializing in CBDC and payment services. This acquisition opens new opportunities for Mintoak's partner banks, such as HDFC Bank, Axis Bank, and SBI, in the e-rupee space, a form of India's CBDC.
Objectives and Opportunities for Mintoak and Digiledge
Digiledge, which specializes in CBDC and payment services, becomes the cornerstone for expanding Mintoak’s capabilities in the e-rupee domain. Raman Khanduja, Mintoak's CEO, states that the firm aims to facilitate access to digital tools and financial services for small and medium enterprises.
E-Rupee: Progress and Challenges
India's Central Bank launched the e-rupee pilot in December 2022, gradually expanding it from banks to payment companies. Despite reaching 1 million transactions by June 2024 due to incentives, adoption remains sluggish. The Reserve Bank of India had previously urged banks to increase transactions to 1 million per day by late 2023, a push that has since ceased, casting doubt on the initiative's future.
The acquisition of Digiledge marks ongoing efforts in India's digital currency sector. While the e-rupee faces challenges, the sector continues to attract investment and develop new solutions for growth and integration of digital financial tools.
