The licence allows the startup to aggregate different payment instruments for merchants, both online and offline
The approval comes more than two years after Mswipe received an in-principle nod from the RBI in August 2022. After the initial approval, the startup said it planned to build an in-house online payment gateway and move towards offering full-stack payment services to merchants operating across channels
Mumbai-based fintech startup Mswipe Technologies has received the final payment aggregator (PA) licence from the Reserve Bank of India (RBI) for both online and physical payment modes.
The licence will also allow Mswipe to facilitate inward and outward cross-border payments, expanding its payments business beyond domestic transactions.
Founded in 2011 by Manish Patel, Mswipe began as a point-of-sale (PoS) device provider focused on offline card payments.
Over the years, it has expanded its offerings to include PoS terminals with integrated online and offline card payments, QR codes, sound-based payment confirmation devices and payment gateways.
In February 2024, the startup raised $20 Mn from Alpha Wave Ventures. The round included both equity and debt, with Alpha Wave also extending debt funding to the company through compulsorily convertible debentures.
At the time, Mswipe said it would use the capital to expand its merchant payment network, strengthen product development and invest further in its technology infrastructure.
Overall, it has raised more than $118 Mn in funding from the likes of Alpha Wave Global, B Capital, Matrix Partners, DSG Consumer Partners, Epiq Capital, among others.
On the financial front, Mswipe’s payments business turned adjusted profitable in FY24. The startup reported a revenue of over INR 276 Cr for the year, while its net loss reduced 5.7% to INR 46.2 Cr. It is yet to file its FY25 numbers.
Mswipe competes with the likes of PhonePe, Paytm, Ezetap and Innoviti in India’s digital payments and merchant services space.
The licence comes at a time when the central bank has given PA licence to a number of fintech companies recently, including Paytm, Unlimit, Airpay, Easebuzz, among others.
Curated by James Chen
