Skydo Receives In-Principle Authorisation from RBI as Payment Aggregator-Cross Border
Skydo, a cross-border payments firm, has secured in-principle authorisation from the Reserve Bank of India (RBI) to function as a Payment Aggregator-Cross Border (PA-CB) entity. This makes Skydo one of the pioneering companies in the cross-border payments sector to obtain such an authorisation.
As per Skydo’s announcement, this authorisation will reinforce its mission to ensure that cross-border payments are compliant, seamless, and cost-effective for exporters in India. Founded in 2022, the company currently supports over 12,000 exporters in India and processes more than $250 million in annual export payments.
Target Audience and Services Offered
Skydo’s clientele primarily consists of small and medium enterprises (SMEs) that sell a diverse array of products and services to customers worldwide. The platform collaborates with prominent banks across the globe, offering a comprehensive suite of services to manage:
- Invoicing
- Payments
- Reconciliation
Key Features of Skydo
The Bengaluru-based company boasts several key features, including:
- Transparent Pricing: No markup on live mid-market forex rates
- Digital Onboarding: Instant Know Your Customer (KYC) processes
- Dedicated Customer Support: Available for all clients
- Fast Settlements: Ensuring timely payments
- Streamlined Regulatory Compliance: Including instant issuance of Foreign Inward Remittance Advice (FIRA)
With this new approval, Skydo aims to amplify its payment volume tenfold over the next 18 to 24 months, expand its services to include import payments, and create additional trade corridors on a global scale. The company also plans to launch several innovative offerings specifically tailored for India’s expanding Micro, Small, and Medium Enterprises (MSMEs) export market. Upcoming services will encompass:
- Credit services
- Tax compliance assistance
- Treasury services
- Export Data Processing and Monitoring System (EDPMS) reconciliation
Recent Developments
Skydo has also obtained Payment Service Provider (PSP) approval from Amazon, allowing it to facilitate payments for exporters involved in Amazon’s Global Selling programme.
The company is committed to simplifying cross-border B2B payments and aims to decrease forex charges for businesses by over 50%. So far, Skydo has raised $9.7 million in equity funding, led by Elevation Capital. The organisation collaborates with leading banks worldwide, providing businesses and freelancers with foreign virtual accounts for receiving payments, free from taxation or compliance concerns.