From Rejection to Approval: Zaakpay’s Journey to Becoming an RBI-Approved Payment Aggregator


MobiKwik’s subsidiary, Zaakpay, has recently received preliminary approval from the Reserve Bank of India (RBI) to operate as a payment aggregator (PA). This significant development allows Zaakpay to onboard new merchants, thereby expanding its operational capabilities.

Zaakpay’s journey to obtain this approval was challenging and spanned over two years. MobiKwik initially applied for the PA license for Zaakpay in 2021, but the application was denied by the RBI. The rejection was attributed to MobiKwik’s net worth being slightly below the required threshold. As of March 31, 2021, the company needed to show a net worth of Rs 15 crore, but it fell short by Rs 70 lakh, having a net worth of Rs 14.3 crore. This shortfall was only for a brief period of about 10-15 days, as the company managed to infuse capital and raise its net worth shortly after. In response to the rejection, MobiKwik reapplied in October 2022 after meeting the RBI’s requirements, eventually gaining approval​​​​​​.

Upasana Taku, the co-founder and COO of MobiKwik, expressed enthusiasm for the opportunity to support more businesses and to further develop MobiKwik into a comprehensive digital banking services platform. This approval marks a significant milestone for MobiKwik, reinforcing its commitment to enhancing its platform and services.

MobiKwik, founded in 2009 by Bipin Preet Singh and Upasana Taku, introduced Zaakpay as its payment gateway in 2012. The Gurugram-based company has been approved by India’s market regulator for a Rs 1,900 crore fund, which comprises a fresh issue of Rs 1,500 crore and an Offer-for-Sale (OFS) of Rs 400 crore. MobiKwik’s business is divided into two segments: payments and financial services. Zaakpay plays a crucial role in the MobiKwik ecosystem, especially in the consumer payments and Buy Now Pay Later (BNPL) segments. In the fiscal years of 2019, 2020, and 2021, MobiKwik’s payment gateway costs to Zaakpay amounted to Rs 646.61 million, Rs 1,428.82 million, and Rs 1,397.26 million, respectively​​.

This development is particularly significant given the evolving regulatory landscape for payment gateways in India. In December 2022, Razorpay, another leading payment gateway, temporarily halted the onboarding of new online merchants due to communication from the RBI, highlighting the stringent regulatory environment payment aggregators operate in​​​​.

The approval of Zaakpay as a payment aggregator is a testament to MobiKwik’s resilience and commitment to compliance with regulatory requirements, and it positions the company to play a more significant role in India’s digital payment landscape.

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