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Skydo Gains RBI Approval to Boost Cross-Border Payment Solutions for India’s Exporters

Skydo, the cross-border payments firm, has officially secured in-principle approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB) entity. This approval marks a significant milestone in Skydo’s ambition to streamline cross-border payments for India’s exporters, offering a more compliant, seamless, and cost-effective way to manage international transactions.

Incorporating this approval, Skydo is positioning itself as a leader in cross-border payments, aiming to empower small and medium-sized businesses (SMBs) to expand globally without the usual complexities of foreign currency management.

A Game Changer for India’s Exporters

Skydo was founded in 2022 and has rapidly scaled to serve over 12,000 exporters across India. The company processes over $250 million annually in export payments, making it one of the key players in the cross-border payment space. Now with the RBI’s nod, Skydo can enhance its offering, making payments not just easier but more cost-effective for businesses across the country.

Skydo’s primary focus is on SMEs selling a wide variety of products and services to international clients. The company’s platform provides end-to-end solutions that simplify the often-complex process of invoicing, payments, and reconciliation. Through its partnership with top banks globally, Skydo ensures a smooth and compliant process for its users.

Skydo cross-border payments approval India exporters

Simplified Payment Experience for SMBs

For businesses in India, especially the small and medium-sized exporters, the challenges of cross-border transactions are multifaceted. From confusing foreign exchange rates to long settlement periods, many face financial friction when dealing with international clients. Skydo addresses these pain points with its transparent pricing structure, which includes zero markup on live mid-market forex rates.

Skydo’s platform also integrates instant KYC for digital onboarding, enabling businesses to start transacting quickly and securely. This instant approval process eliminates long delays that have historically hindered smaller businesses from tapping into international markets.

Not to mention, Skydo’s commitment to compliance is evident in its provision of Foreign Inward Remittance Advice (FIRA) instantly upon processing payments. This feature ensures that businesses can stay aligned with India’s regulatory requirements, something that’s often a headache for exporters.

Key Features:

  • Transparent pricing with no forex markup
  • Instant digital onboarding with KYC
  • Fast settlements and real-time reconciliation
  • Access to global banking partners

By offering a wide range of payment solutions, Skydo makes cross-border business easier, faster, and cheaper for Indian SMBs.

Ambitious Plans for Expansion

With the RBI’s approval in hand, Skydo is looking to take its operations to the next level. The company has outlined an aggressive growth strategy, targeting a 10x increase in payment volume over the next 18-24 months. This expansion plan is set to include more global trade corridors, increasing Skydo’s ability to serve an even larger pool of exporters.

The company also has plans to broaden its offerings. In addition to payment processing, Skydo aims to support Indian businesses with credit services, tax compliance, treasury services, and even Export Data Processing and Monitoring System (EDPMS) reconciliation. These services are designed to address a range of challenges faced by India’s exporters, ultimately helping them grow their businesses and expand their international reach.

Skydo’s commitment to improving the cross-border payments landscape is also reflected in its partnerships with global payment providers. The company recently received Payment Service Provider (PSP) approval from Amazon, which allows it to process payments for businesses participating in Amazon’s Global Selling program. This is expected to open up a wealth of opportunities for small exporters looking to tap into the global e-commerce market.

The Road Ahead: Serving India’s Growing MSME Sector

The approval from the RBI also comes at a time when the Indian government has been actively pushing for growth in the MSME sector. As part of this national effort, Skydo is positioning itself as a critical enabler of international trade for India’s MSMEs. With its cost-effective and scalable solutions, Skydo is poised to support this sector in realizing its full export potential.

To better understand how Skydo is helping businesses, here’s a snapshot of the growth it’s already seen:

Key Metric Current Figure Projected Growth
Export Payments Processed $250 million annually 10x growth in 18-24 months
Number of Exporters Served 12,000+ exporters Expanding globally
Funding Raised $9.7 million More funding anticipated
Global Bank Partnerships Numerous Expanding network

As Skydo continues to scale, the benefits for Indian exporters will multiply. The company’s customer-first approach promises to make international trade simpler, safer, and more rewarding for businesses across the country.

Skydo’s recent achievement marks the start of an exciting chapter for both the company and India’s growing export sector. As more businesses gain access to streamlined payments, the potential for growth in international markets is limitless.

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