The parent company of Policybazaar, PB Fintech has unveiled brand new wholly-owned subsidiary named PB Pay Private Limited.

The company explained that move is aimed at venturing into the payment aggregation business, a sector that facilitates merchants with both offline and digital payment acceptance infrastructure.

In a exchange filing the company stated, "Pursuant to Regulation 30 read with Schedule III of SEBI Listing Regulations, we hereby inform that the Board of Directors of the Company at its meeting held today i.e. Wednesday, March 20, 2024, has, inter-alia, considered and approved incorporation of a wholly owned subsidiary of the Company under the name and style of “PB Pay Private Limited” to carry on the business of payment aggregator – domestic and / or cross border or both, as may be permitted by the Reserve Bank of India, by facilitating merchants with offline and/or digital payment acceptance infrastructure or both."

Acquiring a payment aggregator license from the Reserve Bank of India (RBI) is a prerequisite for the establishment of PB Pay. PB Fintech has expressed its intention to seek this license once PB Pay is formally incorporated. This step is vital as the RBI requires companies to hold such a license in order to engage in merchant acquisition and provide digital payment solutions.

PB Fintech has suggested an authorized share capital of Rs 50 crore and a paid-up share capital of Rs 27 crore to launch PB Pay. The financial framework aligns with the regulatory and statutory requirements mandated by the RBI, encompassing the minimum net worth threshold for payment aggregators.

The timely strategic growth is advantageous for PB Fintech, as it follows a successful first quarter. The company achieved a profit after tax (PAT) of Rs 37.2 crore in Q3 FY24, marking a notable improvement from a loss of Rs 87.6 crore in the corresponding quarter of the prior fiscal year.

Operating revenue experienced a 43% year-on-year surge, totaling Rs 871 crore in Q3 FY24.