PolicyBazaar promoter PB Fintech Limited has decided to set up a wholly-owned subsidiary to carry out the business of a payment aggregator. The proposal received the nod of the Board of PB Fintech on Wednesday.
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To be christened as ‘PB Pay Private Limited’, this subsidiary would be a non banking finance company (NBFC) and carry on the business of payment aggregator—domestic and/or cross border or both, as may be permitted by the Reserve Bank of India (RBI).
This would be done by facilitating merchants with offline and/or digital payment acceptance infrastructure or both, PB Fintech said in a regulatory filing.
Payment aggregators enable their clients to accept various payment methods such as debit cards, credit cards, cardless EMIs, UPI, bank transfers, e-wallets and e-mandates.
The paid-up capital of the subsidiary (PB Pay Private Limited) would be ₹27 crore.
“The proposed company on incorporation will apply to RBI for Payment Aggregator (PA) License and conduct the PA business once RBI licence is received,” the filing said.
Also, the application for the process of incorporation of the proposed subsidiary would be filed and completed subject to approval from the relevant authorities, PB Fintech filing added.
PB Fintech had in the third quarter ended December 31,2023 reported a first ever net profit of ₹37.2 crore against a net loss of ₹87.6 crore in the same quarter last fiscal.
Revenue from operations for the quarter under review grew 42.7 per cent to ₹870.9 crore (₹610.1 crore).
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For the nine months ended December 31, 2023, PB Fintech reported a net profit of ₹4.2 crore.