PB Fintech to Establish Payment Aggregator Subsidiary

Online insurance aggregator PB Fintech, which operates as a loan and insurance product aggregator Policybazaar, has received the Board of Directors’ approval to incorporate a wholly-owned subsidiary to carry on the business of payment aggregator.

Details of the Subsidiary

On March 20, 2024, PB Fintech held a board meeting and confirmed that the board of directors agreed to incorporate a wholly-owned subsidiary under the name and style of “PB Pay Private Limited”. This wholly-owned subsidiary will be involved in the business of payment aggregator in India, cross border or both, as may be permitted by the Reserve Bank of India (RBI), by facilitating merchants with offline and/or digital payment acceptance infrastructure or both.

As per the exchange filing, the proposed authorised share capital is ₹50,00,00,000 (Rupees Fifty Crores Only) and the proposed paid-up share capital is ₹27,00,00,000 (Rupees Twenty Seven Crores Only).

The wholly-owned subsidiary will be a Payment Aggregator (PA) belonging to the Non Banking Financial Company (NBFC) industry. In an exchange filing, the company also stated that the proposed wholly-owned subsidiary, upon incorporation, will apply to RBI for a Payment Aggregator License and conduct the PA business once the RBI licence is received. The application for the process of incorporation of the proposed wholly-owned subsidiary would be filed and completed subject to approval from the relevant authorities.

About PB Fintech

PB Fintech Ltd, well-known as Policybazaar, is the largest online platform for insurance and lending products in India. The company offers its services through its flagship brands, Paisabazaar and Policybazaar. For the quarter ended December 31, 2023, PB Fintech reported a net profit of ₹26.96 crore against a net loss of ₹2.34 crore in the quarter ended December 31, 2022. In the quarter ended December 2023, the company reported a total income of ₹90.29 crore, which grew by approximately 17.22% compared to ₹77.03 crore in the quarter ended December 2023.

On Thursday, March 21, 2024, the share price of PB Fintech Ltd opened at ₹1,120.95, touching the day’s high at ₹1,151.00, as of 11:34 AM on the NSE.

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