Strategic Pivot: Groww Focuses on Core Broking Verticals
The Bengaluru-based fintech company, Groww, has withdrawn its PA licence without making a formal public announcement. This action signals a clear strategic recalibration for the stockbroker.Groww first entered the payments segment in 2023. During this period, it launched a UPI app allowing customers to manage bill payments, recharges, and credit card repayments.
Analysts suggest this latest move underscores a renewed and intensified focus on the platform's foundational strengths: broking and wealth management services.
Understanding the Payment Aggregator Landscape and Compliance
A payment aggregator (PA) licence in India mandates stringent requirements for fintech firms. These include obtaining RBI authorisation, maintaining a minimum net worth of ₹ 25 crore, and adhering strictly to KYC/AML standards.Groww, whose parent entity is Billionbrains Garage Ventures Ltd, achieved its IPO listing on 12 November 2025. The public subscription for the ₹ 6,632.3 crore IPO was held between 4 November and 7 November 2025.
Industry Trends: Peers Follow Suit in Pausing Payments Expansion
Groww's decision places it among several large players streamlining their digital payment operations. Earlier in 2024, food delivery giant Zomato also surrendered its payment aggregator and wallet licence.Zomato's parent firm, Eternal, had received RBI approval in 2022. However, the company exited the segment without divulging specific reasons, preferring to sharpen its concentration on food delivery and quick commerce.
Regulatory Backdrop: RBI Easing Stance on Fintech Compliance
These developments occur against a backdrop of evolving regulatory guidelines for payment aggregators. Between 2021 and 2023, the RBI adopted a notably stricter stance, leading to delays or rejections for several applications citing compliance gaps.However, the central bank has reportedly displayed greater flexibility in 2025. This shift has eased the overall approval process, enabling more companies to navigate the complex PA regulatory framework.
Following this easing, the central bank accelerated approvals across online, offline, and cross-border categories. Major players such as Paytm, Razorpay, PayU, Pine Labs, Easebuzz, and Airpay have received updated licences, according to an Entrackr report.
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