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The Reserve Bank of India has granted final approval to Skydo, a Bengaluru based financial technology company, to function as a Payment Aggregator Cross Border. This authorization marks a significant development in India’s evolving digital payments landscape, particularly for businesses engaged in international trade.
Understanding the PA-CB-I License
The Payment Aggregator Cross Border (Inward) license empowers Skydo to facilitate international payment processing with a primary focus on inward transactions. This regulatory framework enables the company to assist Indian exporters in receiving payments from global clients while maintaining compliance with India’s foreign exchange regulations and payment systems guidelines.
The approval process involves stringent evaluation of an organization’s risk management protocols, compliance infrastructure, and operational security measures. By securing this authorization, Skydo has demonstrated its capability to meet the regulatory standards established by India’s central banking authority.
Addressing Critical Challenges for Export Oriented Businesses
Small and medium enterprises engaged in international trade frequently encounter obstacles related to payment collection, currency conversion costs, and regulatory compliance. Traditional banking channels often involve complex procedures, extended settlement timelines, and opaque fee structures that can significantly impact profit margins.
Skydo’s platform addresses these concerns through a transparent pricing model that eliminates margins on foreign exchange rates, instead charging flat fees for services rendered. The company currently facilitates transactions in more than thirty two currencies, serving a customer base exceeding thirty thousand micro, small and medium enterprises, freelancers, and startups across nearly fifty Indian cities.
Additionally, the platform provides instant digital access to Foreign Inward Remittance Certificates through partnerships with banking institutions, streamlining documentation requirements that exporters must fulfill for regulatory purposes. The company has also expanded its service portfolio to include accounts receivable management tools, such as automated invoicing systems, payment reminders, and integration capabilities with existing accounting and enterprise resource planning software.
Strategic Growth and Market Expansion
The regulatory approval follows Skydo’s recent fundraising success, having completed a ten million dollar Series A investment round. Led by Susquehanna Asia Venture Capital with participation from Elevation Capital, this funding brings the company’s total capital raised to twenty million dollars.
Looking ahead, Skydo has set ambitious targets, aiming to process five billion dollars in annualized payment volume by the end of 2027. The company plans to leverage its regulatory authorization to expand operations into additional international trade corridors and develop new product offerings tailored to the needs of Indian exporters.
The approval represents not only a corporate achievement for Skydo but also reflects India’s continued efforts to strengthen its fintech regulatory framework while supporting digital innovation in cross border commerce.
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