India's Fintech Ecosystem Achieves Regulatory Milestone with Skydo's RBI Nod for Cross-Border Payments
In a significant development for India's financial technology sector, Skydo, a Bengaluru-based fintech platform, has secured final authorization from the Reserve Bank of India (RBI) to operate as a Payment Aggregator–Cross Border (PA-CB). This regulatory approval marks a pivotal moment, enabling the company to expand its regulated suite of cross-border payment services specifically tailored for Indian exporters, with a focused emphasis on small and medium enterprises (SMEs).
The RBI Licence: A Landmark for Fintech Regulation
This final authorization places Skydo among the pioneering cohort of fintech firms in India to obtain the coveted PA-CB licence. The licence empowers the company to legally facilitate and aggregate cross-border payments within the structured framework established by India's central bank. This regulatory step is widely viewed as a move to bolster oversight in the digital payments landscape while simultaneously enhancing trust and confidence among domestic exporters and their international counterparts. The RBI derives its authority to regulate such payment systems from the Payment and Settlement Systems Act of 2007 .
Empowering Exporters and MSMEs
Skydo's platform currently supports over 30,000 micro, small, and medium enterprises (MSMEs), freelancers, and startups spread across more than 50 Indian cities. The service is designed to simplify international collections for these entities. It allows exporters to receive payments in their local Indian accounts from overseas clients, supporting transactions in more than 32 foreign currencies . A key aspect of its offering includes transparent pricing—a flat fee with no hidden markup on live foreign exchange rates—alongside expedited settlement cycles. Furthermore, the platform integrates with partner banks to provide users instant access to essential compliance documentation, streamlining a traditionally complex process.
Strategic Expansion and Enhanced Offerings
Leveraging the RBI licence, Skydo has outlined plans to broaden its product portfolio and extend its reach into new global trade corridors. The company has already demonstrated capability in facilitating local payment acceptance in challenging markets like Africa. Beyond basic payment processing, Skydo provides exporters with a suite of value-added tools such as automated invoicing, payment reminders, detailed analytics, ledger management, and integrations with popular Enterprise Resource Planning (ERP) and accounting software. These features are aimed at improving cash-flow visibility and operational efficiency for small businesses engaged in exports.
Funding and Future Ambitions
The company's growth trajectory is supported by robust financial backing. Skydo recently concluded a $10 million Series A funding round led by Susquehanna Asia Venture Capital, with participation from Elevation Capital. This infusion has elevated its total raised capital to $20 million. With this momentum and its new regulatory status, Skydo has set an ambitious target of processing $5 billion in annualised payment volumes by 2027 , underscoring the rising demand for digital, compliant, and cost-effective cross-border payment solutions among India's exporting community.
Key Facts for Examinations:
-
PA-CB stands for Payment Aggregator–Cross Border , a licence category regulated by the Reserve Bank of India.
-
The RBI governs payment systems in India under the Payment and Settlement Systems Act, 2007 .
-
MSMEs (Micro, Small, and Medium Enterprises) constitute a primary focus segment within India's foreign trade and economic policies.
-
Cross-border payments encompass
Month: Current Affairs - January 10, 2026
Category: RBI’s role & fintech growth