PayGlocal, a cross-border-focused payments platform, has received in-principle approval from the Reserve Bank of India (RBI) for a Payment Aggregator (PA) license. This significant step marks the company’s progression towards full authorization, which, upon completion, will enable PayGlocal to onboard merchants onto its platform for online payment processing. The company was founded in 2021 by payment industry veterans Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande, and has since developed a technology platform that offers payment processing and transaction risk management solutions. These solutions help in securely accepting online payments through various instruments, including cards and global alternative payment methods.
The RBI, on October 31, 2023, notified new guidelines (PA-CB Guidelines) to regulate entities that process online cross-border payments. Previously known as online payment gateway service providers (OPGSP), these entities are now regulated as ‘Payment Aggregators – Cross Border’ (PA-CB). The PA-CB Guidelines mandate that non-bank PA-CBs must register with the Financial Intelligence Unit-India before registering with the RBI and have a minimum net worth requirement. They also specify a limit on the transaction amount that PA-CBs can process, as well as the need to comply with certain aspects of the Payment Guidelines, including appointing a grievance redressal officer and conducting security risk assessments.
Regarding funding, PayGlocal Technologies has raised $16.8 million over two funding rounds, with its latest funding being raised on June 19, 2022, from a Series B round. The company has attracted investment from a total of nine investors, including notable figures such as Kunal Shah and Amrish Rau. In a recent funding round, PayGlocal raised $12 million, co-led by Tiger Global and Sequoia Capital India. Other participants in this round included BeeNext and angel investors like Pine Labs CEO Amrish Rau, Citrus Pay and Jupiter founder Jitendra Gupta, and Cred’s founder Kunal Shah.
This development reflects PayGlocal’s commitment to the Indian market and its emerging role in the global economy. The company’s focus remains on providing innovative payment solutions to facilitate growth in global commerce from India. The RBI’s support in granting the in-principle license is expected to boost PayGlocal’s ability to create more innovative solutions and work towards full authorization. With the new regulatory framework, PayGlocal aims to develop compliant cross-border solutions, thereby advancing India’s cross-border payment agenda.