RBI Greenlights Pine Labs Unit's Full Agya Tech Takeover

TECH

Overview

Reserve Bank of India (RBI) has approved Pine Labs' fintech arm, Setu, to acquire full ownership of Agya Technologies. This move consolidates Setu's position as a regulated Account Aggregator and strengthens Pine Labs' broader digital payments and regulatory footprint. The acquisition follows Setu's existing stake in Agya Technologies. Pine Labs reported a revenue increase to ₹650 crore and a net profit of ₹6 crore in Q2 FY26.

Strategic Consolidation and Regulatory Alignment

The regulatory nod from the Reserve Bank of India is a key step for Pine Labs' strategic objective to fully integrate Agya Technologies, an entity holding an NBFC-Account Aggregator license. This consolidation allows Setu, Pine Labs' fintech infrastructure arm, to exert complete control over operations vital to India's burgeoning financial data-sharing ecosystem.
The acquisition signifies Pine Labs' commitment to deepening its presence within regulated financial services. By securing 100% ownership of Agya Technologies, Setu gains enhanced capabilities in managing sensitive financial data, aligning with RBI's framework for account aggregators. This move follows recent approvals granting Pine Labs licenses for offline, online, and cross-border payments, signaling a comprehensive push into diverse digital payment services.

Financial Performance Boost

This strategic consolidation occurs against a backdrop of improved financial performance for Pine Labs. The company posted ₹650 crore in revenue for the second quarter of FY26, a notable rise from ₹551 crore in the corresponding quarter of the previous fiscal year. A significant turnaround was also seen in profitability, with a net profit of ₹6 crore reported for the quarter, a marked improvement from a net loss of ₹32 crore in Q2 FY25. These results suggest increasing operational efficiency and market traction for Pine Labs' expanding suite of financial technology offerings.

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