PayU gets RBI's nod to operate as a payment aggregator
PayU has finally received RBI's approval to operate as a Payment Aggregator (PA). This approval, in line with the Payment Settlements Act, 2007, allows PayU to begin onboarding new merchants onto its platform. The RBI had previously rejected PayU's application in January 2023 due to its complex corporate structure, prompting the firm to reapply. Anirban Mukherjee, CEO of PayU, views this license as crucial in their mission to establish a globally recognized digital payment infrastructure based in India.
PayU India reported a revenue of $400 million in FY23
In the fiscal year 2023, PayU India reported a revenue of $400 million, marking a growth of 31% from the previous fiscal year. The results for FY24 are still awaited; however, its revenue from core payments business rose 15% to $211 million in H1 FY24. The fintech company is currently preparing for an Initial Public Offering (IPO) and has been working closely with the regulator on its reapplication for the license.
Razorpay and Cashfree secured their approvals last December
Due to a complex corporate structure, the RBI had previously imposed restrictions on fintech companies including Paytm, Razorpay, and Cashfree. While Razorpay and Cashfree secured their approvals last December, Paytm is still awaiting its approval. In related news, Kunal Shah-backed fintech firm CRED also recently received preliminary approval to operate as a PA. Being a PA enables companies to handle and transfer customers' money to merchants.
