PayNearby: Transforming 50 Lakh Kirana Stores into Digital Pradhans for Rural Bharat
"High-end technology is usually concentrated with the top 10% of India. We resolved to take it to the bottom of the pyramid." This mission, led by Anand Kumar Bajaj, founder of PayNearby, is redefining what it means to be "banked" in India. By empowering 50 lakh local micro-entrepreneurs across 20,000 PIN codes, PayNearby is turning every neighborhood Kirana store into a "Digital Pradhan" that serves the financial needs of mass Bharat.
Founded in 2016 by a group of banking veterans, PayNearby operates India's leading branchless banking network. Whether it's withdrawing cash through Aadhaar, paying utility bills, or accessing insurance, PayNearby's technology-first approach ensures that the "High End" of digital finance is accessible to everyone, from the bustling streets of Mumbai to the remotest villages in Bihar.
The "Pizza" Model of Financial Services
Anand Bajaj describes PayNearby's architecture using a unique "Pizza" analogy. To build a successful fintech for Bharat, you must first build a solid, well-rounded, and far-reaching base. This base consists of essential banking services—cash withdrawals, deposits, and money transfers—that bring footfall to the retail outlet.
"The base fetches you just two bucks if sold alone," Bajaj explains. "The real value comes when you add the cheese and toppings—digital payments, micro-loans, insurance, and travel services." By creating this integrated stack, PayNearby turns a simple Kirana store into a multi-service hub that earns the retailer more income while providing essential services to the community.
The PayNearby "Pizza" Stack
- The Base: Core banking services (Aadhaar-enabled withdrawals, money transfers) that handle population-level scale.
- The Cheese: Digital payment threads like micro-ATM, mPOS, UPI QR, and a homegrown "Khata" for retailers.
- The Toppings: Specialized services including insurance broking, travel distribution (ITA/IRCTC), and bill payments.
- The Slicing: Data-driven insights that create the "Bharosa Score," helping lenders provide micro-loans to previously unbanked retailers.
The "Bharosa Score": Credibility Beyond Credit
A major hurdle for micro-entrepreneurs in India is the lack of formal credit history. Traditional credit scores don't work for a Kirana store owner who operates largely in cash. PayNearby solves this through its proprietary Bharosa Score (Credibility Score).
By analyzing the terabytes of transaction data accumulated through the platform, PayNearby builds a profile of the retailer's reliability. This "trust score" allows partner banks and NBFCs (like Bajaj Finserv and Hero Fincorp) to provide loans to retailers who are "new to credit." As Bajaj notes, "Credibility begets credibility," creating a virtuous cycle where successful transactions lead to better financial opportunities.
PayNearby by the Numbers
- 50 Lakh+: Micro-entrepreneurs empowered across India.
- 20,000+: PIN codes covered, reaching the deepest parts of Bharat.
- 90%+: Of the population (the underserved segment) targeted for inclusion.
- ₹15 Cr: Initial investment raised at the "idea stage" from the Roha Group.
- 100%: Success in converting retail stores into "Sovereign grade" trusted touchpoints.
The "Team of Rivals": Building with Friends
One of the most interesting aspects of PayNearby's growth is how Bajaj built his team. He kept a list in his phone called the "Team of Rivals"—a list of talented friends and colleagues he had encountered during his time at ICICI and YES Bank. When he started Nearby Technologies, he reached out to these "sensible set of people" to join him.
"We knew they had delivered what they stood for," Bajaj says. This foundation of pre-existing trust allowed PayNearby to scale its operations with a cohesive leadership team that already understood the complexities of Indian banking and technology infrastructure.
— Anand Kumar Bajaj, Founder, PayNearby
Future Vision: ONDC and the "Angan to Drawing Room" Linkage
Looking ahead, PayNearby is integrating with the Open Network for Digital Commerce (ONDC) to create a "mesh network" of connected entrepreneurs. This will allow for two-way transmission: taking urban products to rural areas, but also taking rural creativity—home-cooked food, fabrics, and SHG (Self Help Group) products—from the "Angan to the Drawing Room" of urban India.
By modernizing retailing and digitizing the supply chain, PayNearby aims to provide market linkages to millions of women entrepreneurs and small-scale producers, truly democratizing commerce for the nation.
Leadership Lessons from Anand Bajaj
- Listen, Interpret, Signal: Pay a premium to the signals you receive from the market and interpret them correctly.
- Articulate with Clarity: Being able to explain what you want to do and how it delivers value is essential for alignment.
- Collaborate and Co-create: You are not alone. Place reliance on your team and focus on cohesive, collective effort.
- Optimize the Minimum: Entrepreneurship is about getting "more out of less for more people." Focus on Maximum Impact with limited means.
Key Takeaways
For Fintech Founders: Trust is your most valuable asset in Bharat. Building "Sovereign grade" credibility at the last mile is the only way to scale financial services.
For Policy Makers: Branchless banking networks like PayNearby are essential for "Good Governance," allowing for efficient distribution of subsidies and services during crises.
For Aspiring Entrepreneurs: Don't wait for the perfect moment. Be courageous, bootstrap with your savings, and the rest—investors, team, and success—will follow.
About the Guest
Anand Kumar Bajaj is the Founder, MD & CEO of PayNearby. A Chartered Accountant and IIM Ahmedabad alumnus, he is a banking industry veteran with over 23 years of experience. Prior to founding PayNearby, he served as the Chief Innovation Officer at YES Bank and held key leadership roles at ICICI Bank under the mentorship of Madhabi Puri Buch. Bajaj holds six patents in banking technology and is a passionate advocate for taking high-end technology to the "Bharat" segment of the Indian population.