Skydo Secures Final RBI Clearance to Operate as Cross-Border Payments Aggregator
Bengaluru-based fintech firm Skydo has achieved a significant milestone by obtaining final approval from the Reserve Bank of India (RBI) to function as a cross-border payments aggregator (PA-CB). This development positions Skydo among a select few organizations authorized under the new PA-CB framework.
Regulatory Approval Timeline
The final clearance follows an initial approval granted by the RBI in January last year. This progression highlights the central bank’s evolving regulations aimed at enhancing oversight of cross-border payment activities.
Enhanced Compliance and Security
With this new license, Skydo is now authorized to facilitate regulated cross-border payment collections, responding to increased scrutiny from the central bank. The integration of these activities into the payments aggregators framework underscores the emphasis on compliance and security in the financial landscape.
Innovative Payment Solutions
Skydo’s platform is engineered to empower exporters, allowing them to collect payments locally from international clients. The benefits include transparent flat-rate pricing, an absence of markups on live market exchange rates, and rapid settlement processes. The company also offers instant access to critical compliance documents, further easing operational burdens for exporters.
Customer and Currency Reach
Currently, Skydo serves over 30,000 customers across more than 50 cities, facilitating collections in over 32 currencies. This broad reach positions the company to play a crucial role in the expanding cross-border trade landscape, allowing businesses to thrive in new markets.
Leadership Insights on RBI Approval
Awadhesh Ranjan, Head of Risk and Compliance at Skydo, commented, “The RBI authorization is a strong testament to our understanding of the cross-border payments landscape and our commitment to compliance and secure operations.” This confidence in regulatory standards is poised to enhance trust among customers and banking partners alike.
Future Developments and Offerings
Skydo’s co-founder and CEO, Srivatsan Sridhar, remarked that the fresh PA-CB clearance is a pivotal achievement for the company. He emphasized the importance of building robust and scalable systems to cater to SMEs and global enterprises. The company plans to deepen its product offerings and expand coverage across various trade corridors, including unique solutions for the growing MSME export sector.
Funding and Growth Trajectory
Founded in 2022 by Srivatsan Sridhar and Movin Jain, Skydo has successfully raised $10 million in a Series A funding round in December, bringing its total funding to $20 million. This financial backing will bolster the company’s mission to deliver seamless cross-border payment solutions to Indian exporters, enhancing their global competitiveness.