In a significant boost for India's export community, the fintech startup Skydo has obtained the crucial Payment Aggregator-Cross Border (PA-CB) authorisation from the Reserve Bank of India (RBI). This regulatory green light allows the Bengaluru-based platform to formally expand its suite of cross-border payment services, specifically designed for Indian exporters, freelancers, and startups.
What the RBI Licence Means for Indian Businesses
The PA-CB licence places Skydo among the first fintech companies in India to receive this specific regulatory endorsement for handling international transactions. This move is set to deepen trust with small and medium businesses, enterprise clients, and global banking partners, as stated by the company's co-founder and CEO, Srivatsan Sridhar. The authorisation comes as the company scales its payment volumes and expands into new trade corridors.
Skydo's platform primarily serves over 30,000 micro, small, and medium enterprises (MSMEs), freelancers, and startups spread across more than 50 Indian cities. It simplifies the complex process of receiving money from abroad by enabling exporters to collect payments locally from their overseas clients. The platform's key benefits include:
- Transparent Pricing: A flat-fee structure with no hidden markup on live mid-market foreign exchange rates.
- Faster Settlements: Expedited transfer of funds to Indian businesses.
- Compliance Ease: Instant access to necessary compliance documents via integrations with partner banks.
- Integrated Tools: A suite of accounts-receivable tools like invoicing, automated payment reminders, ledger management, and integration with ERP or accounting software.
Expansion Plans and Financial Backing
Bolstered by the RBI's approval, Skydo has outlined ambitious plans for growth. The company intends to deepen its product offerings and extend its coverage to additional international trade corridors. It has already introduced local payment acceptance in challenging markets such as Africa and provides value-added services including advanced analytics.
The fintech firm recently strengthened its financial foundation by raising $10 million in a Series A funding round. This investment was led by Susquehanna Asia Venture Capital and saw participation from Elevation Capital. This round has taken Skydo's total funding to $20 million. With this capital and the new licence, the company is targeting a formidable goal of reaching $5 billion in annualised payment volumes by the year 2027.
The Bigger Picture for India's Export Economy
Skydo's regulatory milestone is more than just a corporate achievement; it represents a step forward in streamlining India's export finance infrastructure. By leveraging technology to reduce costs, increase transparency, and speed up settlements for MSMEs, such platforms play a vital role in enhancing the competitiveness of Indian goods and services in the global market. The PA-CB licence framework ensures that these innovations operate within a secure and regulated environment, protecting the interests of all stakeholders involved.
