In a significant development for the burgeoning fintech sector, PayGlocal, a pioneering cross-border payments startup, has achieved a critical milestone by securing in-principle approval from the Reserve Bank of India (RBI) for a payment aggregator (PA) license. This achievement marks a major stride forward for the company, positioning it for greater expansion and operational capabilities in the global market.
Following this regulatory nod, the startup is poised to advance to the next phase, subject to the upcoming series of comprehensive evaluations and clearances mandated by the central bank. These forthcoming assessments will pave the way for PayGlocal to effectively onboard a diverse array of merchants onto its innovative payment platform, enhancing its operational prowess and market reach.
Established in 2021 by the dynamic trio of Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande, PayGlocal has rapidly carved a niche for itself as a technology-driven platform specializing in facilitating seamless cross-border payments. Leveraging its cutting-edge technological infrastructure, PayGlocal empowers merchants to effortlessly process payments from customers residing outside of India, simplifying transactions in their respective local currencies. Moreover, the platform prides itself on ensuring comprehensive processing solutions and adept transaction risk management services.
The startup has already made significant strides, garnering substantial financial backing to fuel its growth trajectory. Notably, it has successfully raised an impressive sum of over $17 million in funding, with prominent investors including the renowned entities Tiger Global and Peak XV Partners. Most recently, PayGlocal secured a substantial $12 million in its Series B funding round in June 2022, underscoring the investors’ confidence in the company’s vision and potential.
Expressing enthusiasm for the future prospects, CEO Prachi Dharani emphasized the pivotal role of the RBI’s support in the startup’s journey. “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,” stated Dharani. She also commended the RBI’s proactive approach in promoting the cross-border payment agenda, recognizing the new PA CB guidelines as a significant step forward for the regulatory framework in this domain.
It’s worth noting that the RBI’s recent implementation of distinct guidelines for payment aggregator licenses within the cross-border segment has stimulated notable momentum and interest among the industry players. Notably, companies that have received initial approval from the regulatory body will be required to secure explicit authorization from the central bank to facilitate cross-border payment services, underlining the regulatory commitment to fostering secure and efficient cross-border transactions.
This recent development has sparked optimism within the financial technology sector, underscoring the potential for continued growth and innovation in the realm of cross-border payments, with PayGlocal positioned at the forefront of this transformative wave.
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