PB Fintech, the parent company of PolicyBazaar, announced on Wednesday that its board has approved the creation of a wholly-owned subsidiary focused on payment aggregation services.
The new subsidiary, named PB Pay Private Limited, will engage in payment aggregation business, both domestic and cross-border, subject to approval from the Reserve Bank of India. It will facilitate merchants by providing offline and digital payment acceptance infrastructure.
The proposed company will have a paid-up share capital of ₹27 crore and plans to apply for a Payment Aggregator License from the RBI to conduct its business.
Earlier in February, Temasek Holdings, a Singapore-based sovereign wealth fund, sold its entire 5.42% stake in PB Fintech for ₹2,425 crore through open market transactions. The shares were sold by Temasek’s subsidiary, Claymore Investments (Mauritius) Pte Ltd, in three tranches on the BSE.
In the same period, US-based financial services company Capital Group acquired shares of PB Fintech in multiple transactions.
In January, Softbank’s arm Svf Python II (Cayman) sold a 2.5% stake in PB Fintech for ₹914 crore.
For the third quarter ended December 31, 2023, PB Fintech reported a net profit of ₹37.2 crore, a significant improvement from the net loss of ₹87.6 crore in the same period the previous year. Its revenue from operations also saw a substantial increase of 42.7% to ₹870.9 crore compared to the corresponding period last fiscal year.
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