setu: Setu in principle gets RBI nod for account aggregator license
“Super excited and thrilled to share our subsidiary – Agya Technologies – has received an account aggregator license in principle. We have been waiting for this for so long,” Setu co-founder Nikhil Kumar wrote on Twitter.
AAs are non-bank financial companies that allow individuals to share and access data between financial institutions over a consolidated network. These entities must have received approval from the RBI to access and share this data.
The development 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, retain its brand entity, and continue to serve its existing merchants.
Pine Labs, through the acquisition, planned to enter the integrated finance space and use Setu’s API infrastructure stack to offer new services to its online merchant partners.
Founded in 2018 by Sahil Kini and Nikhil Kumar, Setu is headquartered in Bangalore and aims to make formal financial products more accessible to everyone. It offers open APIs in four categories: bills, savings, credit, and payments.
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“The license now allows us to go one step further and power AA for every bank, NBFC and fintech in India,” Kumar wrote.
The AA license and plans around the Open Network for Digital Commerce (ONDC) and Open Credit Enablement Network (OCEN) framework were Setu’s main offerings in the sale to Pine Labs, sources said.
About eight entities, including Agya, have been given the green light in principle by RBI to operate as account aggregators, while six are fully operational.
These are CAMSFinServ, Cookiejar Technologies Private Limited (Finvu); FinSec AA Solutions Private Limited (OneMoney); NESL Asset Data Limited; Perfios Account Aggregation Services Pvt Ltd (Anumati); and Yodlee Finsoft Private Limited, according to data from Sahamati, a member-driven industry alliance formed to promote and strengthen the ecosystem of account aggregators in India.
On July 6, Finvu AA, a consent-based account aggregator, raised $2.5 million in funding from M2P, Varanium Nexgen Fund, IIFL, DMI Sparkle Fund and others.