PB Fintech to establish a new wholly-owned subsidiary - PB Pay Private Limited aimed at venturing into the payment aggregation business

Policybazaar's parent business, PB Fintech, has announced plans to create PB Pay Private Limited, a new wholly-owned subsidiary. The company states that the goal of the move is to enter the payment aggregation industry, which provides merchants with infrastructure for accepting both digital and physical payments. 

The Reserve Bank of India (RBI) must provide a payment aggregator licence before PB Pay may launch. PB Fintech has said that when PB Pay is formally constituted, it will seek for this licence. This is an important step since firms who want to acquire merchants and provide digital payment solutions must have this licence, according to the RBI.

PB Fintech has suggested a paid-up share capital of Rs 27 crore and an authorised share capital of Rs 50 crore to launch PB Pay. The financial foundation satisfies all legislative and regulatory standards, including the minimum net worth criterion for payment aggregators, as established by the RBI. 

The strategic growth for PB Fintech coincides with the company's best quarter of earnings. Following a loss of Rs 87.6 crore in the same quarter of the previous fiscal year, the firm declared a profit after tax (PAT) of Rs 37.2 crore in Q3 FY24. This is a substantial reversal.