PB Fintech dives into payment aggregation with PB Pay launch

PB Fintech, the parent company of PolicyBazaar, is expanding its horizons by venturing into the payment aggregator business. In a recent announcement, PB Fintech revealed its plans to establish a wholly-owned subsidiary named PB Pay Private Limited dedicated to the payment aggregator domain.

According to regulatory filings, PB Pay Private Limited will focus on facilitating merchants with both offline and digital payment acceptance infrastructure, catering to domestic and cross-border transactions as permitted by the Reserve Bank of India. The proposed company is set to have a paid-up share capital of ₹27 crore.

In anticipation of launching its operations, PB Pay Private Limited aims to secure the necessary licenses from the RBI to conduct payment aggregator business seamlessly. This strategic move reflects PB Fintech's commitment to diversifying its portfolio and tapping into emerging opportunities in the fintech sector.

This development comes on the heels of Singapore-based Temasek Holdings' complete divestment of its 5.42% stake in PB Fintech for ₹2,425 crore. The stake sale was executed through open market transactions, signaling significant investor activity in the company's shares.

Concurrently, US-based financial services firm Capital Group has acquired shares of PB Fintech, further reshaping the ownership landscape of the company. These transactions underscore the attractiveness of PB Fintech to global investors.

PB Fintech's financial performance for the third quarter ended December 31, 2023, reflects its growth trajectory, with a notable shift from a net loss to a net profit of ₹37.2 crore. The company's revenue from operations surged by 42.7% to ₹870.9 crore compared to the corresponding period in the previous fiscal year.

With its foray into the payment aggregator segment and robust financial performance, PB Fintech is poised to strengthen its position as a key player in India's fintech ecosystem. As it navigates through regulatory processes and market dynamics, all eyes will be on PB Pay Private Limited's journey and its impact on PB Fintech's overall growth trajectory.