After completion of the deal, it will hold 7.75% of the total share capital of Mintoak on a fully diluted basis, it said.
“Financial investment in a growing fintech startup offering payments and value-added services to merchants and enhancing acquirers’ digital engagement with merchants,” the bank said, citing the objective of investing in the startup.
As a part of the transaction, HDFC Bank will subscribe to 21,471 fully paid-up compulsory convertible preference shares (‘CCPS’) of face value of Rs 20 for an aggregate consideration of Rs 9,731 per CCPS to be issued by Mintoak.
The transaction also includes a secondary component.
HDFC Bank said it will also purchase 10,538 fully paid-up equity shares of the startup of face value Rs 10 for an aggregate consideration of Rs 9,731 per equity share from certain existing shareholders of Mintoak.
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Founded in 2017, Mintoak is a payments-led fintech platform which provides digital point-of-sale and value-added services to merchants.
Through its platform, Mintoak also allows business owners to keep a tab on their stores through a real-time dashboard.
In its filing, HDFC said that Mintoak currently has a presence in Mauritius and Kuwait, apart from India.
For the fiscal year ending March 31, 2022 (FY22), Mintoak had an annual turnover (operating income) of Rs 11.28 crore and net profit of Rs 1.47 crore.
The startup had clocked a turnover of Rs 1.76 crore in FY21 and Rs 60 lakh in FY20.
The deal is expected to be completed by January 31.
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