" "

Policybazaar's parent company to launch a new payment aggregator subsidiary

ISN Team
New Update
Policybazaar's parent company to launch a new payment aggregator subsidiary

PB Fintech, the parent company of Policybazaar, recently unveiled plans to establish a new wholly-owned subsidiary named PB Pay Private Limited.

According to the company, The move is aimed at venturing into the payment aggregation business, a sector that facilitates merchants with both offline and digital payment acceptance infrastructure. 

PB Fintech informs in an exchange filing

"Pursuant to Regulation 30 read with Schedule III of SEBI Listing Regulations, we hereby inform that the Board of Directors of the Company at its meeting held today i.e. Wednesday, March 20, 2024, has, inter-alia, considered and approved incorporation of a wholly owned subsidiary of the Company under the name and style of “PB Pay Private Limited” to carry on the business of payment aggregator – domestic and / or cross border or both, as may be permitted by the Reserve Bank of India, by facilitating merchants with offline and/or digital payment acceptance infrastructure or both," PB Fintech informed in an exchange filing.


Seeking regulatory approval

The inception of PB Pay is contingent upon obtaining a payment aggregator license from the Reserve Bank of India (RBI). PB Fintech has expressed its intention to apply for this license once PB Pay is officially incorporated.

The step is crucial as the RBI mandates such a license for companies looking to acquire merchants and offer digital payment solutions.

Financial foundations

To kickstart PB Pay, PB Fintech has proposed an authorized share capital of Rs 50 crore and a paid-up share capital of Rs 27 crore. The financial groundwork meets the regulatory and statutory requirements set by the RBI, including a minimum net worth threshold for payment aggregators.

The strategic expansion comes at an opportune moment for PB Fintech, following its first profitable quarter. The company reported a profit after tax (PAT) of Rs 37.2 crore in Q3 FY24, a significant turnaround from a loss of Rs 87.6 crore in the same quarter of the previous fiscal year.

Operating revenue saw a 43% year-on-year increase, reaching Rs 871 crore in Q3 FY24.