Cashfree Payments Files for PA-CB Licence, Aims to Return to Profitability in FY25

After receiving the final payments aggregator (PA) licence, Cashfree Payments is aiming to return to monthly profitability by the end of the current financial year, and full-year profitability in FY25, said Co-Founder Reeju Datta.

Cashfree Payments had posted a profit for four financial years ending FY21 with a PAT of over ₹25 crore, before slipping into the red in FY22. It was then forced to let go 80-100 employees in January 2023.

"We were a consistently profitable organisation barring the last two financial years. So the idea is to get back to that very soon. By next year, we definitely intend to be profitable at an annual level. This year also we've been focusing on growth and have invested in product and growth, and are aiming for monthly profitability by the end of the current financial year," Datta said.

The payments infrastructure platform is one of the six entities to receive the final authorisation from the RBI last week to operate as a payment aggregator.

The focus is now on regaining lost market share by growing the transaction processing volumes and partnering with both SME and large merchants for payment processing solutions.

The company is also looking to expand its suite of value-added payment services that are used by businesses and facilitated by various payment gateways. This includes verification services which help businesses with their onboarding process through features such as bank, UPI and PAN verification, among others.

Cashfree has also applied for the PA-CB (Payment Aggregator – Cross Border) after the RBI on October 31 mandated that all non-banks offering cross-border payment services will need to seek RBI authorisation by April 2024.

(Source: businessline)