RBI orders fintech Simpl to halt payment operations

rbi

The Reserve Bank of India (RBI) has directed Bengaluru-based buy-now-pay-later fintech startup Simpl to suspend all payment operations, deepening the company’s regulatory troubles, sources told Moneycontrol.

The move comes after the Enforcement Directorate (ED) in July filed a case under the Foreign Exchange Management Act (FEMA), 1999, against Simpl and its founder-director, Nithyanand Sharma, for alleged foreign exchange violations worth Rs 913.75 crore.

According to the agency, Simpl, registered as One Sigma Technologies Pvt Ltd, received foreign investment for technology services but diverted it towards financial services without necessary approvals, violating foreign direct investment (FDI) rules.

The Economic Times reported the developments first.

Founded in 2016, Simpl operates a “buy now, pay later” (BNPL) platform with more than 26,000 merchants including Zomato, MakeMyTrip, BigBasket, 1MG, and Crocs.

The company had raised $40 million in a Series B round in 2021 led by Valar Ventures and IA Ventures.

The startup has been struggling since 2024. It conducted two rounds of layoffs, impacting over 200 employees, amid a slowing pace of user acquisition and high monthly cash burn.

In May 2024, Simpl has laid off around 160-170 of its staff across departments and roles, especially those in higher-paying functions like engineering and product.