Bengaluru-based fintech startup Simpl has come into the crosshairs of the Reserve Bank of India (RBI). The central bank has asked the Buy Now, Pay Later (BNPL) platform to cease all payment operations “immediately”, according to an Economic Times report.
In a letter dated September 25, 2025, the RBI said that its investigation has revealed that Simpl has been running a payments business involving “payment, clearing and settlement” without authorisation in violation of certain provisions of the Payment and Settlement Systems (PSS) Act, 2007.
“The entity is directed to immediately stop the business of payment systems carried out by involving functions of payment, clearing, and settlement,” the letter reads.
Simpl Faces An Existential Crisis
This is the latest setback for Simpl, which has been facing increased scrutiny from regulators. Earlier in July this year, the Enforcement Directorate (ED) filed a case under the Foreign Exchange Management Act (FEMA), 1999, against Simpl and its cofounder and CEO, Nityanand Sharma, for alleged foreign exchange violations amounting to Rs 913.75 crore.
The probe agency alleged that Simpl, registered under the name One Sigma Technologies Private Limited, received a “substantial” amount of Foreign Direct Investment (FDI) from the US for technology services but routed it for financial services without obtaining prior approval from the Centre.
“Further, it was learnt that M/s One Sigma Technologies Pvt Ltd received FDI to the tune of Rs. 648.87 crore and issued Convertible Notes to the tune of Rs. 264.88 crore under the 100% automatic route by declaring its business activity as Benefits of Information Technology and other computer service activities. During the course of investigation under FEMA, 1999, the business model and revenue generation model of M/s One Sigma Technologies Pvt Ltd were examined, and the same revealed that M/s One Sigma Technologies Pvt Ltd is into the business activities which fall under financial activities,” said the probe agency in a statement.
And the problems don’t end there. Over the past two years, Simpl has executed multiple rounds of layoffs, affecting nearly 200 employees. In May last year, the BNPL fintech company laid off 160-170 employees across various departments, reportedly due to high monthly cash burn and slowing user acquisition.
Founded in 2015 by former Goldman Sachs vice president Nityanand Sharma and Chaitra Chidanand, Simpl is a BNPL (Buy Now, Pay Later) platform that allows customers to settle their bills at e-commerce, food delivery, and quick commerce platforms without making an immediate payment, offering a 15-day interest-free repayment window.
The company claims to have partnered with 26,000 merchants, including Zomato, Swiggy, MakeMyTrip, BigBasket, Tata 1mg, and Crocs.
According to data from Tracxn, the startup has raised a total of $83 million in funding to date. It counts the likes of Green Visor…
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