Cross-border payments startup PayGlocal has received in-principle approval from the Reserve Bank of India (RBI) for a payment aggregator (PA) licence.
The startup will now have to go through the next round of checks and clearances from the central bank, which will enable it to onboard merchants on its platform.
Founded in 2021 by Prachi Dharani, Rohit Sukhija, Yogesh Lokhande and Ruby Jain, PayGlocal is a technology-led platform that enables cross-border payments. It allows merchants to accept and collect payments from customers outside India in their local currency. The platform also claims to take care of processing requirements and transaction risk management.
The startup has raised more than $17 Mn in funding so far from investors, including the likes of Tiger Global and Peak XV Partners. PayGlocal’s last funding round came in June 2022, when it raised $12 Mn in its Series B funding round.
“Driven by our growing GDP, global commerce from India will continue to grow and we remain focused on providing the right payment solutions to enable this growth. The RBI’s support in providing this in-principle licence will help us create more innovative solutions as we continue to work towards getting full authorisation,” said Dharani, who is also the CEO of the startup.
Dharani added, “…RBI’s new guidelines on PA CB (Payment Aggregator Cross Border) are a huge step in the right direction from a regulatory framework standpoint, in taking the cross-border payment agenda of the country forward.”
The companies operating in the cross-border segment have recently received separate RBI guidelines for payment aggregator licence. Companies that have received an in-principle nod from the regulator will also need to get explicit permission from the central bank to offer cross-border payment services.
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