Indian fintech startup Mintoak has acquired Digiledge in a deal valued at around$3.5 million, marking the first acquisition in India's central bank digital currency (CBDC) sector.

The move comes as the Reserve Bank of India continues expanding its pilot for the e-rupee, which was launched in December 2022 as a digital alternative to physical currency.

Mintoak, backed by PayPal and HDFC Bank, aims to enhance its merchant payment services by integrating Digiledge's CBDC and bill payment capabilities.

Mintoak's partner banks, including HDFC Bank, Axis Bank, and SBI, will now be able to offer a broader range of CBDC-related payment solutions.

CEO Raman Khanduja stated that the acquisition would help merchant acquirers support small and medium enterprises with improved digital tools and financial services. The expansion aligns with India's growing efforts to strengthen digital transactions and financial inclusion.

Several payment firms are actively seeking to participate in the CBDC pilot, with Cred and MobiKwik already enabling customer access earlier this year.

Google Pay, PhonePe, and Amazon Pay have also expressed interest in joining, as India's digital payments ecosystem continues to evolve rapidly.