Amidst increasing regulatory scrutiny in India's fintech landscape, several companies have received approval from the Reserve Bank of India (RBI) to operate as payment aggregators.
Joining the ranks of approved startups are SaaS unicorn Zoho, along with fintech firms Juspay and Decentro.
Juspay, founded in 2012 by Vimal Kumar and Ramanathan RV, offers a full-stack digital payments SaaS platform serving leading companies across sectors like BFSI, ecommerce, travel, and fintech.
Decentro, established in 2020 by Pratik Daudkhane and Rohit Taneja, provides a full-stack API banking solution and counts backers like YCombinator, Kunal Shah of CRED, and Lalit Keshre of Groww.
Zoho, founded in 1996 by Vembu and Tony Thomas, offers software-as-a-service solutions across various business operations. Last year, Zoho surpassed 100 Mn users across its applications and serves over 700K businesses globally.
While Zoho's operations are primarily enterprise-focused, Juspay and Decentro cater to the fintech sector.
The approval from RBI comes amidst increased regulatory oversight, exemplified by the recent restrictions imposed on fintech giant Paytm's banking vertical, prohibiting it from accepting deposits beyond February 29.
The RBI's ongoing scrutiny underscores the importance of compliance and regulatory adherence in the fintech sector. Nevertheless, the central bank has extended its Payments Infrastructure Development Fund (PIDF) scheme till December 2025, aimed at bolstering digital payments infrastructure across various regions in India.
Despite regulatory challenges, the Indian digital payments sector is projected to reach a market size exceeding $253 Bn by 2030, reflecting a 5% compound annual growth rate (CAGR), according to Inc42’s State Of Indian Fintech Report.
The RBI is still processing applications from other companies like Freecharge, PayU, and LivQuik, among others, further indicating the evolving landscape of India's fintech ecosystem.