“Excited and excited to share our subsidiary – Aagya Technologies – has received an in-principle license for Account Aggregator. We have been waiting for this for so long,” wrote Setu cofounder Nikhil Kumar on Twitter.
AAs are non-banking financial companies that allow individuals to share and access data between financial institutions on a consolidated network. These entities must obtain approval from RBI to access and share such data.
Growth comes after digital payment service provider Pine Labs
Acquired Setu in a cash and stock deal worth $70-75 million last month, After the acquisition, Setu was to operate independently, maintain its brand entity and continue to serve its existing merchants.
Pine Labs, through the acquisition, was planning to enter the embedded finance space, and was planning to use Setu’s API infrastructure stack to provide new services to its online merchant partners.
Founded in 2018 by Sahil Kini and Nikhil Kumar, Setu is headquartered in Bengaluru and aims to make formal financial products more accessible to all. It offers Open APIs in four categories – Bills, Savings, Credits and Payments.
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“The license enables us to go even deeper and empowers AA for every bank, NBFC, and fintech In India,” wrote Kumar.
Sources said the plans around AA licenses, and the Open Network (ONDC) and Open Credit Enablement Network (OCEN) framework for digital commerce were Setu’s key offerings during the sale to Pine Labs.
Around eight entities, including Aagnya, have received RBI’s in-principle approval to act as account aggregators, while six are fully operational.
These are CAMSFinServ, Cookieger Technologies Pvt Ltd (Finvu); Finsec AA Solutions Private Limited (VanMoney); NESL Asset Data Ltd.; Perfios Account Aggregation Services Pvt Ltd (Permitted); and Yodlee Finsoft Pvt Ltd, a member-driven industry alliance to promote and strengthen the account aggregator ecosystem in India, according to data from Consensus.
on 6th July, finwu aaa consent-based account aggregator,
M2P. raised $2.5 million in funding fromVaranium Nexgen Fund, IIFL, DMI Sparkle Fund, and others.