August 2025

Vendor Management Software/Platform best

Top 9 Vendor Management Platforms & How To Choose One

Behind every successful enterprise lies a network of suppliers, partners, and contractors. Yet, the very relationships that power growth also expose businesses to risks like financial, reputational, and regulatory. A weak link in a vendor chain can stall operations, trigger compliance breaches, or worse, compromise trust with customers.

This is why Vendor Management Platforms (VMPs) have become central to modern business. No longer just procurement add-ons, these platforms now sit at the heart of governance, enabling companies to verify vendors, track performance, and maintain compliance without slowing down day-to-day business.

In this article, we’ll explore what a vendor management platform is, how to choose one, and the Top 9 vendor management platforms.

What Is A Vendor Management Platform?

A Vendor Management Platform is a software system that governs the lifecycle of a third-party relationship. It begins with onboarding, capturing company details, verifying statutory IDs, and collecting compliance documents. It extends into contract management, risk checks, ongoing performance monitoring, and eventually, vendor renewal or exit.

The logic is simple: without a central system, vendor management becomes fragmented, files live in inboxes, risk checks are delayed, and compliance officers spend weeks preparing for audits. A VMP consolidates these steps into a single, traceable workflow.

But the best platforms go further. They integrate with ERP systems like SAP and Oracle, link to identity and SSO tools such as Azure AD, plug into e-signature solutions for faster contracting, and feed data into BI dashboards for strategic decision-making. The outcome is not only efficiency but confidence that every vendor is who they claim to be, and that every risk is being monitored.

How To Choose The Right Vendor Management Platform

The selection of a VMP should never be about chasing the most features. It should be about aligning the tool with your business model, your regulatory environment, and your technology ecosystem.

Key considerations include:

  • Regulatory fit: Does the platform understand your compliance needs? For instance, an Indian bank must be able to verify the GSTIN, PAN, and Aadhaar. A European subsidiary, on the other hand, will prioritise GDPR compliance.

  • Workflow flexibility: Can non-technical teams adjust forms, approval paths, or risk scoring without waiting for IT? Agility here often determines adoption.

  • Integration readiness: How well does the system talk to your ERP, finance, or identity stack? Poor integrations often derail the promise of automation.

  • Security credentials: Look for SOC 2 and ISO certifications, clear data retention policies, and alignment with India’s DPDP Act alongside global standards.

  • Scalability: Can it handle thousands of vendors as easily as it handles hundreds? Growth should not break the system.

  • True cost of ownership: Beyond licence fees, factor in usage costs for verifications, onboarding volumes, and support.

Ultimately, the right VMP is one that makes life easier for your compliance team while giving procurement and finance leaders the data they need to make sharper decisions.

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Top 9 Vendor Management Platforms

1. AuthBridge

If vendor risk is one of the biggest challenges facing Indian enterprises today, AuthBridge is one of the few platforms built specifically to address it. While global suites tend to assume uniform regulatory landscapes, AuthBridge recognises the complexity of operating in India, with its mix of GST registrations, Udyog Aadhaar numbers, and sector-specific rules.

Why AuthBridge Leads:

  • Digital-first onboarding: Vendors can be onboarded in hours rather than weeks, with automated collection of GSTIN, Udyog Aadhaar, PAN, and bank verification.

  • Comprehensive due diligence: From financial health to adverse media screening, AuthBridge ensures that no red flag is missed.

  • Seamless integrations: Compatible with ERP systems like SAP, Oracle, Tally, and Microsoft Dynamics, ensuring clean financial workflows.

  • Compliance at its core: SOC 2 Type 2 and ISO certifications, with design principles that align with the DPDP Act.

  • Performance monitoring: Tools to track SLAs and vendor scorecards, ensuring relationships are measured and improved over time.

Best suited for: Regulated industries such as BFSI, telecom, and healthcare, as well as multinationals expanding into India. AuthBridge brings credibility and speed, making it an invaluable partner where compliance cannot be compromised.

2. SAP Ariba

SAP Ariba remains one of the most recognised names in procurement and vendor management. It offers a vast supplier network, contract management, risk analysis, and integration with SAP ERP. Its strength lies in scale, perfect for enterprises running complex, global operations.

Best suited for: Large enterprises that want procurement, vendor risk, and contract management deeply integrated with their SAP environment.

3. Coupa

Coupa combines spend management with supplier oversight. Its vendor management capabilities allow businesses to monitor supplier performance while gaining visibility into costs. With strong analytics, it appeals to CFO-led organisations that demand transparency.

Best suited for: Enterprises seeking tighter control over spend alongside vendor risk insights.

4. GEP SMART

A unified procurement platform, GEP SMART offers sourcing, contract management, and supplier collaboration. Its cloud-native design makes it accessible, while its analytics help procurement leaders make data-led decisions.

Best suited for: Organisations looking for a single platform to manage sourcing and vendor performance in one place.

5. Jaggaer

Jaggaer has long been associated with vendor risk and supplier performance. Its platform allows for detailed supplier assessments and integrates well into global procurement processes.

Best suited for: Organisations with global supply chains that require rigorous vendor assessments and visibility across categories.

6. Oracle Procurement Cloud

Oracle’s procurement suite includes strong vendor onboarding, contract management, and compliance features. Its tight integration with Oracle ERP is the obvious advantage for enterprises already invested in Oracle’s ecosystem.

Best suited for: Oracle ERP customers seeking to extend their stack into vendor management without introducing new vendors.

7. Zycus

Zycus, with its AI-driven “Merlin” suite, brings automation to supplier management, contract analysis, and risk monitoring. It has carved a reputation for balancing usability with intelligence.

Best suited for: Enterprises that want a mix of automation and AI-powered insights across procurement and vendor management.

8. Kissflow Procurement Cloud

Kissflow offers no-code procurement and vendor management workflows, enabling rapid setup and easy adoption. Its vendor portals are simple, making it attractive for mid-sized firms that value agility.

Best suited for: Mid-market firms that want to digitise vendor management quickly without heavy IT dependence.

9. Tipalti

Tipalti approaches vendor management through the lens of payables. Its strength is in onboarding suppliers globally, managing tax/KYC compliance, and automating payments. For finance leaders, it reduces the friction of global payments while maintaining compliance.

Best suited for: Finance-led teams dealing with a large volume of international supplier payments.

Closing Thoughts

Vendor management is not just about reducing cost, but also about building trust, ensuring compliance, and maintaining resilience. The right platform is the one that helps your business strike that balance. Among the many choices, AuthBridge stands out not simply for its technology, but for its understanding of the Indian market and its ability to combine compliance rigour with business agility.

By Abhinandan, ago
FSSAI Food Business Verification

FSSAI Verification For Food Businesses: Complete Guide

Introduction To FSSAI Verification And Its Importance For Food Businesses

The Food Safety and Standards Authority of India (FSSAI) is the regulatory body responsible for ensuring the safety and quality of food products in India. Established under the Food Safety and Standards Act, 2006, FSSAI is critical in maintaining food safety standards, implementing laws, and regulating the food industry. It ensures that food businesses adhere to health and hygiene protocols, ultimately protecting public health.

For any food business in India, whether you’re involved in food production, distribution, or retailing, obtaining FSSAI registration or a license is an essential step towards gaining the trust of your customers. FSSAI certification is considered a mark of credibility, confirming that your business meets the stringent food safety standards the government sets.

The FSSAI verification process involves two key stages: first-time registration and ongoing compliance. While registering for FSSAI for the first time may seem daunting, ongoing compliance ensures that businesses meet food safety standards even after obtaining the initial certification. Neglecting these regulations can lead to hefty penalties and, in some cases, business shutdowns.

This guide will walk you through the step-by-step process of obtaining an FSSAI registration or license, ongoing compliance measures, and everything you need to know to ensure your food business adheres to the FSSAI’s stringent requirements.

Types Of FSSAI Licenses And Registration

FSSAI offers three license categories depending on a food business’s size, nature, and turnover. It’s important to understand which category your business falls into because the registration or licensing process and the associated requirements vary accordingly.

1. FSSAI Registration for Small Food Businesses (Basic Registration)

For small food businesses with an annual turnover of up to ₹12 lakh, the FSSAI provides a Basic Registration. This registration type is ideal for small-scale operators like food vendors, small eateries, and low-scale food processors. The process is more straightforward and quicker than obtaining a license, making it the entry-level certification for food businesses in India.

2. FSSAI State License

The State License is required for medium-sized food businesses with an annual turnover ranging from ₹12 lakh to ₹20 crore. It applies to companies that handle larger operations, such as manufacturing units, large restaurants, and wholesale food suppliers. This license type ensures that food businesses adhere to specific state-level regulations, with the state food safety department taking the lead in inspection and monitoring.

3. FSSAI Central License

Businesses with an annual turnover exceeding ₹20 crore, or those operating across multiple states, must apply for a Central License. This license applies to large manufacturers, importers, exporters, and large-scale food businesses that must comply with national regulations. The FSSAI’s Central Licensing Authority governs the issuance of this license and conducts inspections to ensure food safety standards are met across regions.

How To Apply For FSSAI Registration And License

Applying for FSSAI registration or a license is a straightforward process. Below, we outline the step-by-step process for first-time registration and applying for State or Central licenses.

1. Basic Registration Process (For Small Businesses)

Suppose your food business falls under the Basic Registration category. In that case, the process is relatively simple and can be done online through the official FSSAI website or the FSSAI Food Safety Compliance System (FoSCoS) platform. Here’s how:

  1. Create an Account on FoSCoS: Visit the official FSSAI website and create an account on FoSCoS. Fill in your business details, including the type of business, address, and nature of food products.

  2. Provide Documentation: For basic registration, you will need to submit minimal documentation, such as:

    • A photo ID proof of the business owner

    • Proof of business address

    • Details about the food safety supervisor (if applicable)

  3. Submit Application: After completing the details and uploading the necessary documents, submit your application for review. The FSSAI will process the application and grant the registration, typically within 7 days.

  4. Receive Registration Number: Once approved, you will receive your FSSAI registration number. Display this number on your food products or packaging.

2. State and Central License Application Process

For businesses that require a State License or a Central License, the process is more detailed and involves more documentation. Here’s how to apply:

  1. Create an Account on FoSCoS: Just like the basic registration, create an account on the FoSCoS platform. However, in this case, you must select either the State or Central License option, depending on your business’s turnover and nature.

  2. Fill in the Application Form: Complete the application form with detailed business information, including:

    • Food category and description of the food products manufactured or sold

    • Details of the manufacturing unit, if applicable

    • Proof of business address

    • List of equipment used in food processing or packaging

  3. Submit Supporting Documents: You will need to provide additional documents for State or Central licenses, such as:

    • Food safety management system certification (e.g., ISO 22000, HACCP)

    • Details of food safety supervisors

    • Plant layout and process flow chart

    • Proof of ownership or rental agreement of the business premises

    • No objection certificate (if required)

  4. Inspection and Verification: After the application is submitted, an FSSAI inspector will visit your facility to verify the information provided and ensure that it complies with the standards set by FSSAI. The inspection focuses on food hygiene, quality control, and safety protocols.

  5. Receive License Number: Once your business passes the inspection and all documents are verified, you will receive your FSSAI license number, which must be displayed on food products and packaging.

3. Important Considerations for FSSAI Application

  • Accuracy is Key: Ensure that all the details in your application are accurate and match the supporting documents. Any discrepancies could delay the approval process or lead to rejection.

  • Timely Renewal: FSSAI registrations and licenses must be renewed before expiry. Renewal applications should be submitted 30 days before the current registration/license expires.

  • Additional Certifications: Depending on the type of food business and the scope of operations, you may be required to apply for additional certifications such as organic certification, halal certification, or export/import certifications.

Ongoing FSSAI Compliance For Food Businesses

The responsibility doesn’t end there once your food business has successfully registered or obtained its FSSAI license. FSSAI compliance is an ongoing requirement to ensure that companies continue to meet the safety, hygiene, and quality standards mandated by the FSSAI. Regular adherence to these standards is essential to maintaining your registration/license and avoiding penalties or shutdowns.

1. Maintaining Food Safety Standards

FSSAI sets stringent guidelines for food safety management that businesses must adhere to consistently. These include:

  • Hygiene and Sanitation: Ensure your premises, staff, and equipment are always clean and hygienic. This includes regularly cleaning manufacturing units, storage areas, and transport vehicles. Proper waste disposal and pest control measures should also be in place.

  • Quality Control Measures: Implement strict quality control systems to ensure food products meet safety standards. This involves monitoring the raw materials used, testing the products at different stages of production, and maintaining proper storage conditions.

  • Food Safety Management Systems (FSMS): Many businesses are required to implement an FSMS. Systems such as HACCP (Hazard Analysis Critical Control Point) or ISO 22000 help businesses identify potential hazards, prevent contamination, and improve food safety.

2. Regular Inspections and Audits

FSSAI conducts periodic inspections of food businesses to ensure they comply with food safety standards. Companies should be prepared for both scheduled and surprise inspections. The inspections typically cover:

  • Compliance with food hygiene regulations

  • Adequate documentation of food safety measures

  • Labelling of food products (ensuring accurate nutritional information and expiry dates)

  • Traceability systems to track raw materials, production processes, and final products.

During an inspection, the FSSAI inspector will also assess whether the business complies with any additional standards, including those set by international food safety organisations (such as HACCP).

3. Reporting and Record Keeping

Maintaining thorough records is an integral part of ongoing FSSAI compliance. These records include:

  • Daily production logs: Track the quantity, type, and details of food produced.

  • Supplier details: Maintain records of raw materials and packaging suppliers, ensuring they also meet FSSAI compliance standards.

  • Inspection and audit reports: Keep copies of previous inspections, internal audits, and any corrective actions taken.

  • Employee training records: Document the food safety training sessions provided to staff, which should be conducted regularly to ensure all employees are up-to-date with food safety practices.

Failure to maintain adequate records can result in penalties, fines, or revocation of your FSSAI license.

4. Renewal and Updates

FSSAI registrations and licenses are not permanent; they must be renewed periodically to ensure continued compliance. Here’s what you need to know:

  • Renewal Timeline: You must submit your renewal application at least 30 days before your registration or license expires.

  • Updating Business Information: If any changes in your business operations, such as a change in ownership, address, or the nature of your business, these changes must be reported to FSSAI and updated in your license.

It’s crucial to keep track of the expiration date of your license and begin the renewal process well in advance to avoid any registration lapses.

5. Labelling and Packaging Compliance

FSSAI requires that food products meet specific labelling and packaging standards. Businesses must ensure that:

  • Product labels mention the FSSAI registration or license number.

  • Nutritional information, including ingredients, allergens, and calorie count, is accurate and easy to understand.

  • Best-before or expiry dates are displayed as per FSSAI guidelines.

  • Manufacturing and batch numbers are included to ensure product traceability in case of a recall.

Non-compliance with labelling regulations can result in fines or the confiscation of goods.

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Penalties For Non-Compliance With FSSAI Regulations

While obtaining FSSAI registration or a license is a crucial step for food businesses, it is equally essential to maintain continuous compliance with FSSAI regulations. Failing to adhere to these standards can lead to serious consequences, including hefty penalties, fines, and even the suspension or cancellation of your FSSAI registration or license. Below are some common penalties that food businesses in India may face for non-compliance with FSSAI regulations.

1. Monetary Fines and Penalties

FSSAI imposes monetary penalties for a wide range of non-compliance issues, including:

  • Failure to Obtain Registration or License: If your food business operates without the necessary registration or license, you may be subject to a fine of up to ₹5 lakh.

  • Failure to Maintain Hygiene and Safety Standards: Any violation of hygiene, sanitation, or food safety regulations can lead to fines ranging from ₹25,000 to ₹5 lakh, depending on the severity of the breach.

  • Incorrect Labelling or Misleading Claims: If food products are found to have incorrect labelling, including misleading claims about nutritional content, allergens, or expiry dates, fines of up to ₹5 lakh may be imposed. Repeated offences can lead to more severe penalties.

2. Suspension or Revocation of FSSAI License

In cases of severe violations, FSSAI has the authority to suspend or revoke the registration or license of a food business. Reasons for suspension or revocation include:

  • Failure to Comply with Inspection Requirements: If your food business fails to comply with the mandatory inspections or does not take corrective actions when required, FSSAI may suspend or revoke your license.

  • Repeated Violations: Businesses that repeatedly fail to comply with FSSAI regulations, even after warnings and fines, may have their registration or license permanently revoked.

  • Contamination or Unsafe Food Products: In cases where a food business produces or distributes unsafe food products that pose a risk to public health, FSSAI can revoke the license to protect consumers.

3. Imprisonment for Serious Offences

In certain circumstances, food business operators may face criminal charges under the Food Safety and Standards Act, 2006. Serious violations that could result in imprisonment include:

  • Selling Contaminated or Substandard Food: Selling food that is contaminated, adulterated, or not fit for consumption can lead to imprisonment for up to 6 months for the first offence, with the possibility of a fine of up to ₹5 lakh. Subsequent violations can result in a jail term of up to 1 year.

  • Selling Misbranded or Misleading Food Products: Businesses found guilty of selling food for sale with false or misleading information can face imprisonment of up to 1 year, along with a fine of up to ₹3 lakh.

4. Compensation to Affected Consumers

In cases where non-compliance harms or injures consumers, the food business may be required to compensate affected individuals. For instance, if contaminated food causes foodborne illnesses, the company may be required to pay medical expenses, lost wages, and other related costs.

5. Seizure of Goods

FSSAI also has the authority to seize food products that do not comply with food safety standards. This includes:

  • Contaminated or Unsafe Food Products: Products not meeting the safety requirements can be seized and destroyed.

  • Products with Incorrect Labels: Food products with misleading or incorrect labelling may be confiscated, especially if they mislead consumers about ingredients, allergens, or nutritional information.

How To Avoid Penalties And Maintain FSSAI Compliance

The best way to avoid penalties and maintain compliance with FSSAI regulations is to:

  • Regularly review food safety standards and ensure your business meets the latest FSSAI requirements.

  • Conduct internal audits to verify that your records, hygiene practices, and safety systems are current.

  • Provide staff training on food safety, hygiene practices, and regulations.

  • Stay updated with FSSAI notifications and any changes to the law that might affect your business.

  • Implement a strong FSMS (Food Safety Management System) like HACCP to prevent safety breaches.

Resources And Important Links For FSSAI Compliance

Staying informed and current with the latest FSSAI regulations is crucial for any food business in India. FSSAI provides a range of official resources that food businesses can refer to for guidance, updates, and compliance assistance. These resources are invaluable for ensuring that your company adheres to food safety standards and remains in good standing with the regulatory authorities.

1. Official FSSAI Website

The FSSAI website is the primary source for all regulatory information related to food safety in India. It provides detailed guides, notices, and instructions for food businesses on obtaining registration, complying with regulations, and renewing licenses. You can access the website here:
www.fssai.gov.in.

Some of the essential sections of the FSSAI website include:

  • Food Safety and Standards Regulations: A complete list of all food safety regulations, rules, and guidelines for food businesses.
    Food Safety and Standards Regulations

  • Licensing and Registration: A dedicated section for food business owners to learn about the different types of licenses and how to apply for them.
    Licensing and Registration

  • Inspection Matrices: Guidelines for inspections and the standards that food businesses must meet to ensure compliance.
    Inspection Matrices

  • Food Safety Display Boards: Regulations regarding the display of food safety information in food businesses.
    Food Safety Display Boards

2. FSSAI Food Safety Compliance System (FoSCoS)

FoSCoS is the online platform FSSAI provides for the registration, licensing, and compliance monitoring of food businesses in India. This system allows businesses to apply for registration or licenses, track the status of applications, and maintain their compliance records online. The platform is user-friendly and helps streamline the regulatory process.

To access FoSCoS, visit:
www.fssai.gov.in/foscos

3. FSSAI Compendium of Licensing Regulations

FSSAI regularly updates its Compendium of Licensing Regulations to provide businesses with the most current rules and regulations regarding food safety. This document is an essential resource for food business owners to understand their obligations and ensure they comply.

You can download the latest Compendium of Licensing Regulations from:
 FSSAI Compendium of Licensing Regulations

4. Training and Certification Programs

FSSAI offers various training and certification programs for food business operators to ensure they have the necessary knowledge and skills to maintain compliance. These programs are aimed at both food safety supervisors and business owners.

The training programs cover food safety management, hygiene practices, quality control, and legal requirements. These certifications are often required for businesses involved in food processing and handling.

Visit the FSSAI website for more information on training and certification:
 Training Programs

5. FSSAI Helpline and Support

FSSAI provides a helpline for businesses seeking assistance with registration, compliance, and other regulatory matters. This support can be invaluable when navigating complex food safety standards or needing clarification on specific regulations.

Contact FSSAI at:

  • Helpline: 1800-11-2080 (Toll-free)

  • Email: info@fssai.gov.in

Conclusion

FSSAI compliance is a critical element in the success and sustainability of food businesses in India. Understanding the regulatory requirements, applying for the correct licenses, and ensuring ongoing compliance are all vital steps to maintaining food safety and building consumer trust. By following the guidelines set by FSSAI and utilising the resources available, food businesses can not only avoid penalties but also foster a reputation for delivering safe, high-quality food products to consumers.

By Abhinandan, ago
The-Franchise-Due-Diligence-Checklist-blog-image

The Franchise Due Diligence Checklist: Financial, Legal, Operational & Data

Introduction

Franchising remains one of the fastest ways to expand a retail or services footprint, but it also concentrates risk at the edges of a brand. As the International Franchise Association’s 2025 Franchising Economic Outlook notes, “franchise output [is projected] to exceed $900 billion in 2025,” underscoring both the sector’s scale and the cost of getting partner selection wrong.

Franchise due diligence is the structured evaluation of a prospective franchise partner’s financial stability, legal standing, operational readiness, and reputation before awarding territory rights. Done well, it protects unit economics, safeguards brand equity, and prevents disputes that are far costlier to fix once a store is live. In 2025, the due diligence bar is higher. Brands are expected to verify beneficial ownership and funding sources, understand litigation history, confirm licence and tax compliance, and test operational capability under real-world constraints such as supply, staffing, and local regulations. Data privacy and consented information flows are now part of the checklist, especially when franchisees access customer or employee data—particularly relevant in India, where the average cost of a data breach has climbed to ₹22 crore (INR 220 million) in 2025, up 13% year on year, according to IBM’s latest report.

Scope Of Franchise Due Diligence

Franchise due diligence extends well beyond a casual assessment of a partner’s financial ability to pay fees or set up a store. It is a multi-dimensional evaluation aimed at ensuring the partner can uphold the brand’s operational standards, regulatory compliance, and long-term profitability.

The scope typically covers:

  • Financial and Corporate Health – Assessing audited statements, capital sources, creditworthiness, and any encumbrances.

  • Legal and Regulatory Standing – Verifying licences, registrations, tax compliance, and identifying ongoing or past litigation.

  • Operational Capability – Evaluating the ability to staff, train, and operate to brand standards, including readiness for supply chain integration.

  • Reputational Background – Checking media mentions, customer reviews, and community standing to identify any reputational red flags.

  • Technology and Data Compliance – Ensuring alignment with brand-mandated POS systems, cyber-security standards, and data privacy regulations.

This scope can expand or contract depending on the risk profile of the franchisee’s location, sector, and investment size.

Franchise Due Diligence Checklist

Investing in a franchise can be a rewarding opportunity—but only if backed by thorough due diligence. From verifying the franchisor’s legal standing to assessing financial health and market reputation, every step counts. This visual checklist outlines the critical elements you should evaluate to avoid costly oversights and build a strong foundation for your franchise success.

A Risk-Based Framework For Franchise Evaluation

Not all franchise prospects carry the same level of risk, so applying a risk-based due diligence framework ensures resources are directed where they have the most impact.
  1. Risk Profiling At Intake The evaluation begins with categorising prospects into low, medium, or high risk based on pre-defined parameters such as industry experience, geographical market, and proposed investment scale. For instance, an experienced operator in a stable metro location may be low risk, while a first-time investor in a high-regulation industry (e.g., food and beverage) would be considered high risk.
  2. Tiered Depth Of Checks
  • Low Risk: Basic identity verification, GST/company registration checks, and credit scoring.
  • Medium Risk: Employment or business track record, site feasibility study, local compliance checks.
  • High Risk: Comprehensive financial audits, litigation search, adverse media screening, on-ground operational assessments, and background checks on directors and key managers.
  1. Integration Of Digital And Field Verification AI-powered APIs and proprietary databases can complete much of the verification instantly, while field verification teams conduct site visits to validate address, infrastructure readiness, and operational claims.
  2. Continuous Monitoring Post-Agreement
    3. Once the franchise is onboarded, ongoing monitoring ensures early detection of risk changes—such as financial stress, negative media coverage, or legal disputes—that could affect the brand.

Core Components Of Franchise Due Diligence

A comprehensive franchise due diligence process examines several interconnected domains. Each provides a different layer of assurance that the prospective partner can operate successfully within the brand ecosystem.

Financial And Corporate Checks

The first layer is assessing financial stability and corporate legitimacy. This involves reviewing audited financial statements for the last three to five years, evaluating liquidity ratios, and confirming that the franchisee can meet both the initial investment and ongoing operational expenses without jeopardising business continuity. Global post-mortems on business failures consistently show cash constraints as the critical fault line—38% of start-ups fail because they run out of money—which is why rigorous liquidity testing and capital-source validation are non-negotiable during franchise intake. CB Insights

Corporate checks include verifying incorporation details through the Ministry of Corporate Affairs (MCA) database in India, confirming GST registration, and validating beneficial ownership records. Where brands embed automated corporate look-ups and bankability assessments into intake, the probability of onboarding an under-capitalised or non-compliant partner drops materially over the first operating year.

Legal And Regulatory Verification

A franchise partner’s legal standing is pivotal. This includes verifying business licences, trade permits, and sector-specific approvals. Litigation searches across court records can reveal pending cases that may disrupt operations. Additionally, compliance with tax obligations, labour laws, and environmental regulations must be confirmed. The current enforcement climate is demonstrably active—in FY 2024–25, India’s food regulator conducted 8,143 inspections of e-commerce food storage facilities and issued notices to 526 for violations—so gaps in licensing or returns can quickly convert into penalties and operational stoppages. The Economic Times

For example, in the food and beverage sector, a missed compliance on FSSAI licensing can result in penalties and forced closure, damaging the franchisor’s brand reputation in the locality.

Operational Capability Assessment

Operational readiness is a strong predictor of franchise success. This assessment covers the franchisee’s staffing plan, training readiness, supply chain integration, and adherence to standard operating procedures (SOPs). Site feasibility studies—often conducted as part of field verification—validate that the chosen location meets the brand’s demographic, accessibility, and infrastructure criteria. Evidence from leading retail operators shows that stores with stronger frontline capability and retention deliver roughly three percentage points higher like-for-like sales than low performers—underscoring why pre-opening readiness audits and training plans matter. McKinsey & Company

Reputational And Media Screening

Public perception can be as critical as financial capability. Adverse-media screening, community feedback, and customer review analysis can uncover reputational risks, such as prior consumer complaints, political controversies, or unethical business practices. The commercial stakes are real: in global research across 14 countries, 6 in 10 consumers say they buy, choose, or avoid brands based on such factors, so reputational red flags at the partner level can translate directly into local demand risk. Edelman

Technology And Data Protection Compliance

Modern franchises often mandate specific point-of-sale (POS) systems, ERP tools, and customer data management protocols. The due diligence process must verify that the franchisee can implement these systems securely and comply with data privacy regulations such as the Digital Personal Data Protection Act (DPDPA) in India. The cost of getting this wrong is rising: the average cost of a data breach in India reached ₹19.5 crore in FY 2024, making early privacy-by-design checks and cyber-readiness assessments a prudent investment in brand protection. The Economic Times

Best Practices — At A Glance

Design diligence as a tiered workflow: move fast on low risk, deepen checks on higher risk, and document decisions.

Risk Tier

Typical Use Case

Depth Of Checks

Decision Authority

Indicative TAT

Low

Experienced operator in a mature metro; proven format

Basic corporate & financial validation, licence check, simplified site review

Ops + Finance

5–7 days

Medium

First-time operator; moderately regulated sector

Full corporate checks, financial model review, litigation search, standard site audit

Ops + Finance + Legal

10–14 days

High

New market; highly regulated sector; complex ownership

Enhanced due diligence: beneficial ownership, detailed legal & compliance, field verification, reputational deep-dive

Cross-functional committee

15–25 days



AuthBridge’s Franchise Due Diligence Solutions

Franchise evaluation moves fastest when verification, field work, and governance live in one flow. AuthBridge brings AI-led checks, consent-driven data capture, PAN-India field verification, and audit-ready reporting into a single, configurable workflow—shortening cycle times without diluting control.

  • Financial & Corporate

We validate MCA/GST/CIN details, map beneficial ownership, and assess bankability. API lookups fetch company master data and director records, while evidence uploads are scanned for anomalies. Outcome: legitimate, solvent counterparties and early filtering of under-capitalised entities.

  • Legal & Regulatory

We check licences and permits, run litigation and court-record searches, and set renewal reminders. Automated scans surface open matters; documents are captured and tagged to locations and formats. Outcome: lower enforcement risk and clear visibility of compliance obligations.

  • Operational (On-Ground)

Our field teams conduct site feasibility and store-readiness audits using geo-tagged visits, photo/video evidence, address and utility validation, and SOP checklists. Outcome: reality-checked claims on location fit, infrastructure, staffing, and launch readiness.

  • Reputation & Media

We screen adverse media, watchlists, and PEP exposure for the entity, principals, and related parties. AI clusters news and social signals and resolves identities to reduce false positives. Outcome: early warning on reputational red flags and hidden related-party risk.

  • Technology & Data

We review POS/ERP readiness and run a privacy-by-design check (DPDPA) covering consent capture, data minimisation, retention, and breach response. Consent artefacts and logs are stored against the case. Outcome: compliant data handling and fewer downstream retrofits.

  • Governance & Reporting

Role-based workflows orchestrate reviewers and SLAs; every action is time-stamped. Dashboards track ageing and outcomes, and exportable, regulator-ready case files keep decisions defensible. Outcome: faster approvals with consistent, auditable records.

Why does it work:. The platform triages by risk, triggers tiered verification automatically, and blends instant API checks with structured field work where needed. All artefacts—consents, documents, site photos, decisions—sit in a single case file, making outcomes repeatable across regions and formats.

Turn Due Diligence Into A Competitive Advantage

Franchise growth is won or lost at the gate. When diligence is engineered as a repeatable, risk-based workflow—rather than a paper chase—it accelerates decisions, lowers enforcement exposure, and protects brand equity long after the ribbon-cutting. Financial resilience, legal cleanliness, operational readiness, reputation, and data discipline are not parallel tracks; they are interlocking controls that determine the long-term health of every outlet and territory. Brands that institutionalise this approach see fewer early-life failures, faster time-to-opening, and a higher quality of partners who can scale with consistency.

AuthBridge helps you operationalise this standard. By combining instant API checks with structured field verification, consent-led data handling, and audit-ready case files, we reduce cycle time without diluting control. The result is a calmer approval room, clearer accountability, and franchise partners who are launch-ready on day one.

FAQs

Franchise due diligence is the structured assessment of a prospective franchise partner’s financial health, legal standing, operational capability, reputation, and data/privacy readiness before awarding rights. It reduces early-life failure, regulatory exposure, and brand damage by turning partner selection into an evidence-based process.

Once a franchise is live, problems are costly to unwind. Rigorous checks up front ensure the partner can fund the build-out, run to brand standards, comply with licences and labour laws, and safeguard customer data—so you open faster, face fewer interruptions, and protect long-term unit economics.

Core checks span five pillars: financial and corporate validation (MCA/GST where applicable), legal and regulatory reviews (licences, permits, litigation search), operational readiness (site feasibility, SOP adherence, staffing/training), reputational screening (adverse media, watchlists/PEP where relevant), and technology/privacy compliance (POS/ERP fit, DPDPA-aligned consent and retention).

Expect audited financial statements, bank or funding proofs, company registration and tax documents, key licences/permits, lease or site intent papers, principal IDs, and any sector-specific approvals. For technology and privacy reviews, you may also request data-flow diagrams, consent language, and basic security policies.

Timelines depend on risk tier. Low-risk cases with clean documentation can close within one to two weeks; higher-risk scenarios—new markets, regulated sectors, complex ownership—may require three to four weeks to complete enhanced checks and field verification.

Look beyond entry fees. Model store economics (capex/opex), working-capital needs, and buffer for a conservative ramp-up. Review leverage, contingent liabilities, and cash-flow resilience. Where the applicant is an entity, test directors’ track record and beneficial ownership to ensure funds are legitimate and stable.

Licences and permits tied to the sector (e.g., food safety, fire and environmental permissions, trade registrations), labour law compliance, and open litigation across relevant courts are essential. Renewal cycles should be mapped and diarised so lapses do not interrupt trading post-launch.

Run site feasibility before final approval and again pre-opening. Verify address and access, catchment demographics, competitor density, utilities, and layout conformance. Field verification with geo-tagged evidence helps validate claims and de-risk location-driven underperformance.

Screen the entity, principals, and material related parties for adverse media, sanctions/watchlists, and conflicts. Review consumer-complaint histories and community footprint. Extend checks to any “must-use” suppliers proposed by the prospect to avoid importing third-party risk.

Franchisees often handle customer and employee data. Ensure consent capture is clear and purpose-linked, data is minimised and retained only as needed, and security controls (encryption, MFA, patching) are in place. Keep consent artefacts and processing logs auditable to demonstrate compliance.

By Siddharth, ago
Motor vehicles aggregator guidelines 2025

Motor Vehicles Aggregator Guidelines 2025: All You Need To Know

Introduction To The Motor Vehicles Aggregator Guidelines 2025

The Ministry of Road, Transport and Highways, in July 2025, introduced the new Motor Vehicle Aggregator Guidelines 2025, providing much-needed updates to the regulations for vehicle aggregators in India. These guidelines are designed to govern the operations of vehicle aggregators, including ride-hailing platforms, food delivery services, and operators of two-wheeler and four-wheeler vehicles. If you are from the ride-hailing/ride-sharing industry or want to venture into this space, here is all you need to know about these guidelines.

Indian DL Frauds

In 2020, MoRTH first introduced the Motor Vehicles Aggregator Guidelines (MVAG) to provide a regulatory structure for India’s fast-growing shared mobility industry. With increased demand for more diverse and flexible mobility options, including electric vehicles (EVs), auto-rickshaws, and bike-sharing systems, the 2025 guidelines were updated to ensure they align with the latest trends in technology and consumer preferences.

Key Highlights Of The 2025 Motor Vehicle Aggregator Guidelines:

  1. Adaptation to Industry Evolution: Reflects significant developments in the shared mobility ecosystem, including introducing electric vehicles, two-wheeler services, and environmentally-friendly transport solutions.
  2. Focus on Safety and Welfare: Prioritises the safety of passengers and the welfare of drivers, ensuring protection for both while enabling seamless mobility.
  3. Sustainability Initiatives: Encourage the transition to electric vehicles (EVs), contributing to a greener mobility solution and reducing carbon footprints.
  4. State-Level Adaptation: States have been given three months to implement these guidelines, allowing room for local adaptations where needed.

Important Definitions Under The Motor Vehicle Aggregator Guidelines 2025

Aggregator

An aggregator is any entity providing a digital platform for connecting passengers and vehicles. Through a mobile app, these platforms allow passengers to book vehicles, whether for ride-hailing, food delivery, or other services involving motor vehicles.

App

App refers to the digital application developed and maintained by the aggregator. This platform is the interface through which passengers book rides, and drivers can offer their services.

Fare

Fare refers to the total amount payable by a passenger for availing services through the aggregator’s app. This includes the cost of tolls, taxes, parking fees, and any additional charges as specified in the agreement between the passenger and the aggregator.

Driver Fare

The Driver Fare is the portion of the total fare the driver receives for services rendered. It includes all costs, such as tolls and parking fees, that the driver incurs while providing the service.

Dynamic Pricing

Dynamic pricing refers to the adjustment of fares based on demand and supply. When ride demand exceeds supply (e.g., during peak hours), the pricing algorithm may increase the fare. However, the maximum dynamic pricing cannot exceed two times the base fare, ensuring some level of price control and fairness.

Induction Training Program

An Induction Training Program is a mandatory training that all drivers must undergo before being onboarded by the aggregator. The program includes training on:

  • How to use the app.
  • Key traffic regulations.
  • First responder training for emergencies (such as road accidents).
  • Sensitivity training, including gender sensitivity and Divyangjan (persons with disabilities) sensitivity.

Additional Key Definitions:

  • Licence: A license issued to the aggregator by the competent authority under Section 93 of the Motor Vehicles Act, 1988.
  • Security Deposit: The amount the aggregator must provide to ensure compliance with the guidelines may be a bank guarantee or an insurance surety bond.
  • Grievance Officer: The officer appointed by the aggregator to address any complaints or grievances raised by passengers or drivers.
  • Onboarding: The process of registering drivers and their vehicles on the digital platform provided by the aggregator.
  • Off-boarding: Removing drivers and their vehicles from the aggregator’s platform.

Applicability Of The Motor Vehicle Aggregator Guidelines 2025

The Motor Vehicle Aggregator Guidelines 2025 apply to all aggregators operating in India. The following section outlines the scope and exclusions of these guidelines.

To whom do the MVA 2025 guidelines apply?

These guidelines apply to any aggregator operating within a state that:

  • Offers a platform for connecting drivers with passengers for ride-hailing or delivery services.
  • Aggregates two-wheelers, four-wheelers, auto-rickshaws, or any vehicle offering mobility or delivery services.

Aggregators must comply with these guidelines to operate legally and maintain a valid license issued by the state Competent Authority.

Entities Not Covered Under The Motor Vehicle Aggregator Guidelines 2025

Certain entities are excluded from these guidelines:

  1. Entities providing interoperable networks: These businesses facilitate networking among licensed aggregators but do not directly onboard drivers or vehicles onto their platform. They do not perform functions like fare management, driver-passenger interactions, or vehicle registrations.
  2. Public transport ticket aggregators: Businesses selling tickets for public service vehicles (like buses or trains) are not subject to these regulations.

Key Points to Note:

  • The guidelines apply to all types of aggregated motor vehicles, including but not limited to ride-sharing and food delivery services.
  • State Governments can adopt additional provisions, provided they align with the central framework.
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Designated Portal By The Central Government

Under the Motor Vehicle Aggregator Guidelines 2025, the Central Government is tasked with developing and designating a single-window portal for the following purposes:

  • Granting and renewing licenses for aggregators.
  • Processing application fees, license fees, and security deposits required for operation.
  • Allowing real-time updates of the aggregator’s compliance status and license validity.

This centralised portal will streamline the licensing process, making it easier for aggregators to apply for and renew their licenses, pay fees, and stay updated on their compliance status. Once operational, this portal will simplify state-level processes by providing a single, unified access point for aggregators to meet regulatory requirements.

Eligibility For Obtaining A Motor Vehicle Aggregator Licence

Under the Motor Vehicle Aggregator Guidelines 2025, the eligibility criteria for obtaining a licence are laid out to ensure that only qualified and capable entities can operate as aggregators. Here are the specific and detailed eligibility requirements:

1. Legal Entity Requirement

  • The applicant must be a legal entity registered as one of the following:
    • A company incorporated under the Companies Act, 2013.
    • Limited Liability Partnership (LLP) or Cooperative Society formed under applicable laws.
    • A partnership firm, provided it meets the compliance criteria under relevant laws.

2. Operational Compliance

Aggregators must meet operational standards outlined in the guidelines:

  • They must ensure all vehicles they manage adhere to the Motor Vehicles Act, 1988 and Central Motor Vehicles Rules.
  • Vehicle roadworthiness should be checked via a fitness certificate issued by the Regional Transport Office (RTO).
  • The aggregator must have a functioning app that is compliant with data privacy and cybersecurity standards under the Information Technology Act, 2000.
  • Vehicles must have GPS tracking devices, panic buttons, and emergency contact systems integrated into the app for real-time vehicle tracking.

3. Financial Standing

  • The applicant must show sufficient financial standing to operate at scale. This includes:
    • Proof of Financial Capability: Aggregators must submit financial statements or other documents showing their ability to cover operational costs, such as driver welfare, vehicle maintenance, and insurance.
    • Net Worth Requirements: Depending on the scale of operations (number of vehicles), the financial capacity must be sufficient to cover security deposits and operational expenses.

4. Fleet Size and Coverage

  • To be eligible for a licence, the aggregator must demonstrate its capacity to manage a minimum fleet size (this varies by state). This includes:
    • Two-wheeler aggregators must manage at least 50 vehicles to be eligible for a licence.
    • Four-wheeler aggregators must manage at least 100 vehicles.
    • Aggregators must provide a breakdown of the types of vehicles they intend to operate (e.g., electric cars, two-wheelers, four-wheelers).

5. Compliance with Passenger Safety Standards

  • The aggregator must ensure the following safety measures are in place:
    • Vehicle Location Tracking Devices: Vehicles must have real-time tracking systems connected to the aggregator’s operations control room.
    • Panic Button: All vehicles must have a functioning panic button, which must be easily accessible by both the driver and the passenger and linked to emergency services.
    • First-Aid Kit: Each vehicle must carry a basic first-aid kit.
    • Insurance: Vehicles must be insured with a third-party liability policy and driver protection insurance.

6. Data Protection and Cybersecurity

  • The aggregator must ensure that all user data collected via the app complies with the Digital Personal Data Protection Act, 2023. This includes:
    • Encrypted communication for sensitive passenger and driver data.
    • Clear privacy policies that ensure users are aware of data collection practices.
    • Cybersecurity measures are used to safeguard against data breaches and ensure secure transactions.

7. No Previous Violation or Cancellation of Licence

  • The applicant must not have had its licence revoked or cancelled within the last 12 months due to violations of the previous guidelines or regulatory non-compliance.
  • Disciplinary Actions: The aggregator’s compliance record is reviewed, and any penalties or previous infractions must be disclosed. Repeated violations may disqualify the applicant from obtaining a new licence.

8. Driver Welfare and Compliance

Aggregators must demonstrate that they have a robust driver welfare program that includes:

  • Health Insurance: Aggregators must provide health insurance to drivers, with a minimum coverage of ₹5 lakh per driver.
  • Training Program: All drivers must complete an Induction Training Program before being onboarded, which must cover:
    • Traffic rules and regulations.
    • Safety protocols for emergencies.
    • Gender sensitivity and disability awareness are essential to ensure inclusive service for all passengers.
  • Driver Background Verification: Aggregators must conduct thorough background checks, including:

9. Technological Capacity

  • The aggregator must have the necessary technological infrastructure to:
    • Process online payments securely.
    • Offer ride booking and fare management through a fully functional app.
    • Ensure real-time monitoring of trips for safety and route optimisation.
    • Provide customer support and grievance redressal through a dedicated system.

10. Environmental Compliance

  • Aggregators must integrate environmentally-friendly vehicles into their fleet, particularly electric vehicles (EVs), as part of the government’s push for sustainability. The guidelines specify that:
    • Aggregators should transition to EVs and green vehicles as part of the fleet, per state-specific EV policies.

Application For Grant Or Renewal Of Licence And Matters Connected Therewith

Grant Of Licence

The application for a new licence as a motor vehicle aggregator must be submitted on the designated portal (once operational). The application includes several essential components, as outlined below:

  1. Application Details:
    • Form I must be submitted by the aggregator, including key details like:
      • Business information (name of the aggregator, registered address, etc.)
      • Number of vehicles proposed for operation.
      • Details of key personnel in the company.
      • Details of branch offices (if applicable).
      • Certification of the company’s legal standing, such as a certificate of incorporation under the Companies Act or equivalent for a limited liability partnership or cooperative society.
  2. Required Fees:
    • Application Fee: A fee set by the respective State Government must be paid online during the application process.
    • Security Deposit: Aggregators must submit a security deposit, which will be held to guarantee compliance with the regulations. The amount of the deposit depends on the fleet size and type:
      • Up to 100 vehicles: ₹10,00,000
      • Up to 1000 vehicles: ₹25,00,000
      • More than 1000 vehicles: ₹50,00,000
  3. Application Review:
    • The state’s competent authority will review the application within 90 days of submission. The authority will check for compliance with all the eligibility conditions specified in the guidelines, including fulfilling the application requirements (details, fees, etc.).
    • If the Competent Authority finds the application incomplete or fails to meet requirements, the application may be rejected. A formal hearing will address the reasons for rejection, and the applicant will be allowed to address the deficiencies.
  4. Issuance of Licence:
    • Suppose the Competent Authority is satisfied with the application and all the necessary conditions have been met. In that case, a licence will be issued within 15 days after paying the required security deposit and license fee.
    • The licence is issued for five years and is valid across the entire territorial jurisdiction of the state where the licence is granted.

Renewal of Licence

Licences issued to aggregators are valid for five years. To maintain their operations, aggregators must apply for their licence renewal. Here’s how the process works:

  1. Application for Renewal:
    • The renewal application must be made at least 90 days before the current licence expires. The renewal application is made using Form II.
    • The renewal application must include:
      • Provide proof of compliance with the guidelines from the previous period.
      • Records of any penalties or punitive actions the Competent Authority took during the licence period.
  2. Review and Renewal:
    • The Competent Authority will review the application, focusing on the aggregator’s compliance with the guidelines and any previous infractions.
    • If the aggregator has met all conditions and has not violated key regulations, the licence will be renewed for another five years.
    • Renewal Fee: The renewal fee is ₹25,000 as specified in the guidelines.
  3. Failure to Renew:
    • If the application for renewal does not meet the renewal conditions or if the aggregator has failed to comply with the guidelines during the initial license period, the Competent Authority may deny the renewal and require the aggregator to apply for a new license.

Key Points For Aggregators To Remember:

  • One Licence per Aggregator: Aggregators need only one licence for all types of vehicles they operate (e.g., two-wheelers, four-wheelers, electric cars, etc.).
  • Timely Application: Applications for new licences and renewals must be made on time to avoid disruptions in operations.
  • Hearing and Rejection: In case of discrepancies or incomplete applications, the Competent Authority will conduct a hearing and provide the aggregator an opportunity to address the issues.

Important Timelines:

  • 90 Days: This is for reviewing new applications and renewal applications.
  • 15 Days: The license will be issued after paying the security deposit and license fee.
  • 90 Days: Period for State Governments to process applications for granting a new licence.

Obligations Of Aggregators Under The 2025 Motor Vehicles Aggregator Guidelines

The Motor Vehicle Aggregator Guidelines 2025 impose specific obligations on aggregators to ensure passenger safety, driver welfare, vehicle compliance, and operational transparency. These obligations are essential for maintaining legal and ethical standards within the shared mobility ecosystem.

Passenger Safety and Driver Welfare

Aggregators must ensure that all vehicles have real-time GPS tracking systems and a panic button, essential for passenger safety. This tracking system must be connected to the aggregator’s control room to allow for real-time monitoring of vehicles. In addition, aggregators are responsible for ensuring that drivers undergo mandatory Induction Training Programs, which include safety protocols, first-response procedures, and gender and disability sensitivity training. Aggregators must also provide their drivers with adequate health and accident insurance, with minimum coverage of ₹5 lakh and ₹10 lakh, respectively.

Vehicle Compliance

All vehicles operated under an aggregator’s platform must meet stringent safety standards. This includes possessing valid fitness certificates from the Regional Transport Office (RTO) and Pollution Under Control (PUC) certificates. Aggregators must also ensure that third-party and comprehensive insurance policies cover all vehicles. To comply with government mandates on sustainability, aggregators are encouraged to transition their fleet to electric vehicles (EVs), which will become a progressively larger part of their fleets over time.

Grievance Redressal and Reporting

Aggregators must establish a grievance redressal mechanism, appointing a dedicated officer to resolve complaints within 15 working days. They must also submit periodic reports on their fleet, driver compliance, and accident records to the Competent Authority, which will conduct periodic inspections to ensure adherence to the guidelines.

Penalties For Non-Compliance With MVAG 2025

The Motor Vehicle Aggregator Guidelines 2025 outline penalties for aggregators who fail to comply with the established regulations. These penalties are designed to ensure that aggregators operate within the legal framework and maintain high safety, transparency, and operational integrity standards.

Types of Violations and Penalties

Aggregators found in violation of any key requirements, such as vehicle compliance, driver welfare, data protection, or operational safety, may face the following penalties:

  • Monetary Fines: Penalties range from ₹1 lakh to ₹1 crore, depending on the severity of the violation. This can include violations related to the failure to maintain proper insurance, driver verification, or safety equipment.
  • Suspension of Licence: In case of repeated non-compliance or serious violations, the Competent Authority may suspend the aggregator’s licence until corrective actions are taken.
  • Revocation of Licence: The aggregator’s licence may be permanently revoked for continuous or severe violations, barring them from operating in the state.

Obligations For Aggregators Regarding Data Collection And Privacy

Data Protection and Security

Aggregators must comply with data protection regulations under the Digital Personal Data Protection Act, 2023. They are required to:

  • Collect minimal data to provide services, including only essential personal information for drivers and passengers.
  • Store data securely: All personal and transaction data must be encrypted and stored on secure servers. Aggregators must implement cybersecurity measures to prevent data breaches.
  • Privacy Policy: Aggregators must maintain a clear privacy policy outlining the types of data collected, collection purposes, and user rights.

User Consent

Before collecting data, aggregators must obtain explicit consent from users (drivers and passengers) via the app interface. This consent should include:

  • Informed consent regarding the collection, use, and sharing of personal data.
  • Precise opt-in mechanisms for users to agree to data collection policies, including location data for ride tracking.

Data Sharing and Third Parties

Aggregators must ensure that user data is not shared with third parties without explicit consent unless required by law. Any data shared must be:

  • Limited to what is necessary for the third party to perform its functions (e.g., insurance verification, payment processing).
  • Monitored: Aggregators are responsible for ensuring that third-party service providers comply with data protection standards.

Inspection And Monitoring Of Aggregators’ Operations

Periodic Inspections

To ensure compliance with the Motor Vehicle Aggregator Guidelines 2025, aggregators will be subject to periodic inspections by the Competent Authority. These inspections are aimed at verifying:

  • Vehicle compliance with safety and emission standards.
  • Driver welfare measures include insurance, training, and background checks.
  • Data security and privacy compliance.

Surprise Audits

The Competent Authority may conduct surprise audits without prior notice to ensure that aggregators adhere to the regulatory standards. These audits may include:

  • On-site checks of vehicles and driver documentation.
  • App reviews to ensure compliance with data protection laws and operational transparency.

Monitoring of Operational Data

Aggregators must provide the Competent Authority with access to real-time operational data, which includes:

  • Ride data (e.g., vehicle locations, ride duration).
  • Financial transactions (e.g., fare collection, commissions).
  • Accident and incident reports.
     This data will be used to monitor aggregator operations and compliance continuously.

Non-Compliance Penalties

If an aggregator fails an inspection or audit, the Competent Authority may impose:

  • Fines are based on the severity of the violation.
  • Suspension of operations until corrective measures are taken.
  • Revocation of the licence in case of repeated or severe non-compliance.

Stay Compliant With The 2025 Motor Vehicle Aggregator Guidelines With Authbridge

Compliance with the Motor Vehicle Aggregator Guidelines 2025 is important for ensuring operational and legal adherence. AuthBridge, a leader in background verification, KYC solutions, and end-to-end third-party risk management services, offers an extensive suite of AI-driven services that effortlessly help aggregators meet regulatory requirements. From real-time driver verification and health assessments to vehicle compliance checks (RC, PUC, insurance), AuthBridge streamlines every step of the compliance process. Their automated solutions, such as AML screening, negative due diligence, and data security tools, ensure that aggregators maintain the highest safety, security, and transparency standards, protecting drivers and passengers while staying aligned with the latest legal frameworks.

Leveraging AuthBridge’s innovative platforms, such as OnboardX and iBRIDGE, aggregators can comply with KYC, data privacy, and grievance redressal regulations and significantly enhance operational efficiency. Real-time monitoring, automated reporting, and integrated grievance handling ensure businesses stay ahead of compliance requirements, reduce risks, and foster trust with their customers and regulatory authorities. AuthBridge has successfully helped some of the top ride-hailing platforms and food delivery services in India by providing solutions to reduce manual effort, improve compliance accuracy, and build a safer, more transparent mobility ecosystem.

Conclusion

As the Motor Vehicle Aggregator Guidelines 2025 shape shared mobility space in India, compliance with these laws is necessary for businesses looking to grow. By leveraging AuthBridge’s comprehensive suite of solutions, aggregators can effortlessly navigate regulatory challenges, ensuring complete adherence to the guidelines. From seamless driver background checks and vehicle compliance verifications to robust data protection and grievance redressal systems, AuthBridge empowers businesses to stay compliant while enhancing operational efficiency. With the expertise and technology AuthBridge provides, aggregators can focus on scaling their operations confidently, knowing they are meeting the highest safety, transparency, and legal compliance standards.

By Abhinandan, ago
Retail-Onboarding-blog-image

Retail Onboarding: A Practical 2025 Playbook for Fast, Compliant Growth

Why Retail Onboarding Matters In 2025

Retail margins are under pressure while risk is rising. Returns alone are projected to reach $890 billion in 2024, with retailers estimating that 16.9% of annual sales are returned—costs that squeeze unit economics and expose weak intake controls. Strong, data-led onboarding is no longer a “nice to have”; it is a foundational control to protect revenue and customer experience.

Returns of abuse and fraud amplify the problem. Recent analyses indicate that around 15% of retail returns in 2024 were fraudulent, forcing brands to tighten policies, segment risk, and use analytics to spot abuse patterns earlier in the journey—including at onboarding. 

For retailers operating in or with India, regulatory expectations are also moving. The central bank has directed payment firms to enhance merchant monitoring and due diligence with timelines into 2025, while KYC obligations for regulated entities continue to emphasise consented data collection and ongoing updates—implications that touch marketplace sellers, franchisees and store-level merchants. 

Digital journeys are the growth engine, yet abandonment remains a persistent leak. Industry studies around account and onboarding flows show low completion rates when forms are long and verification is clunky—evidence that friction-light, mobile-first onboarding can materially improve conversion and support, provided risk checks remain robust. 

Scope Of Retail Onboarding: Stakeholders And Risk Context

Retail onboarding is not a single, uniform process. It is a multi-stakeholder activity that spans franchise partners, suppliers and contractors, and end customers—each with distinct risk profiles, documentation requirements, and regulatory considerations.

Franchisee Onboarding

Franchisees are the retail brand’s front line, often operating under the company’s name, systems, and standards. Onboarding a franchisee is, in effect, an extension of the brand’s identity and compliance obligations. This makes due diligence essential, including verification of the prospective partner’s financial stability, previous business experience, and legal standing. For instance, a global QSR chain entering the Indian market in 2024 reported that structured franchisee onboarding—covering credit history, litigation checks, and operational audits—reduced store-level compliance issues by 38% in the first year (source: internal case study).

Risk here is twofold: reputational damage from poor operational standards, and regulatory exposure if the franchisee engages in unlawful practices. Early screening can surface these risks before they crystallise into costly disputes.

Supplier And Contractor Onboarding

In retail, suppliers range from large-scale manufacturers to local service contractors, such as store fit-out teams or logistics providers. In 2025, supply chain reliability and ethical sourcing have become board-level issues. Global data shows that 71% of retailers experienced at least one significant supply chain disruption in 2024, with many linked to unverified or non-compliant suppliers. Conducting supplier due diligence—covering GST registration, sanctions screening, and on-site inspections—ensures alignment with contractual obligations and mitigates risks related to fraud, counterfeiting, or labour violations.

Contractor onboarding shares similar principles but often requires additional safety compliance checks, especially in sectors such as retail construction, warehousing, and logistics.

Customer Onboarding (B2B / B2C)

While B2C retail onboarding typically focuses on user experience and speed, risk-based segmentation is becoming critical. Loyalty programme sign-ups, credit issuance, and BNPL (Buy Now, Pay Later) services require identity verification, creditworthiness checks, and consent-based KYC to meet both internal risk thresholds and external regulatory requirements.

For B2B customers—such as wholesale buyers or marketplace sellers—the onboarding process is closer to merchant vetting, requiring business registration checks, beneficial ownership identification, and in some cases, anti-money laundering (AML) screening.

The Risk-Based Retail Onboarding Framework

Retail Onboarding Onboarding Flow

The effectiveness of retail onboarding lies in its ability to balance speed with diligence. A rigid, one-size-fits-all process slows growth, while an overly lenient approach invites fraud, compliance breaches, and operational instability. A risk-based framework allows retailers to tailor the depth and intensity of checks to the profile of the stakeholder being onboarded.

1. Risk Profiling At The Outset

The starting point is to define risk categories for each type of onboarding entity—franchisees, suppliers, contractors, or customers. This profiling can be based on parameters such as geography, transaction value, regulatory sensitivity of the goods or services, and historical fraud patterns.

For example, a supplier providing food products to a supermarket chain in India would automatically fall into a high-risk category due to the health and safety implications. This would trigger a more extensive due diligence process compared to a stationery supplier.

2. Tiered Verification Workflows

Once risk categories are established, the verification process can be tiered to match them:

  • Low Risk – Basic identity verification, GST/registration validation, and consent-based KYC.

  • Medium Risk – Employment or business history checks, address verification, and limited financial background checks.

  • High Risk – Full due diligence, including criminal record checks, litigation searches, financial audits, site visits, and regulatory compliance verification.

By adopting this structure, retailers can optimise resources, accelerate low-risk onboarding, and concentrate investigative efforts where they matter most.

3. Integration Of AI And Automation

The most progressive retail verification agencies now employ AI-powered platforms capable of real-time ID checks, face matching, document OCR, and fraud pattern detection. These tools can cut onboarding time from weeks to days, while reducing human error and maintaining compliance with the Digital Personal Data Protection Act (DPDPA) in India.

Case in point: an Indian retail chain integrating AI-led onboarding reduced manual document review by 65% and improved customer onboarding completion rates by 27% within the first quarter of deployment.

4. Continuous Monitoring Post-Onboarding

Onboarding is not the final checkpoint—it is the first. Retailers who conduct ongoing monitoring of partners and suppliers can detect changes in risk profile early, such as a supplier being added to a sanctions list or a franchisee facing legal proceedings. Automated alerts and scheduled re-verification ensure that relationships remain compliant and trustworthy throughout their lifecycle.

Best Practices For Improving Retail Onboarding Outcomes

Best Practices for Improving Retail Onboarding Outcomes

The ultimate goal of retail onboarding is to enable rapid go-to-market while protecting the brand from risk. Achieving this balance requires deliberate process design, supported by data and technology. The following best practices have consistently delivered measurable improvements for retail organisations.

Streamline Documentation Without Sacrificing Compliance

One of the biggest causes of onboarding drop-offs is documentation overload. Retailers should audit their onboarding forms and remove redundant fields, while ensuring that all legally required information is still captured. The introduction of digital consent forms, API-based document retrieval (e.g., GST, MCA data in India), and pre-filled templates can significantly reduce friction.

For example, a retail chain onboarding new franchisees through integrated government API checks reduced average document submission time from 3 days to under 6 hours, without compromising compliance standards.

Personalise The Onboarding Experience

A one-size-fits-all script rarely meets the needs of diverse stakeholders. Personalised onboarding—adjusted for entity type, location, and risk profile—improves both efficiency and trust. For instance, high-value B2B customers might require additional support from a dedicated account manager, while small franchisees may benefit from simplified onboarding portals with step-by-step guidance.

Leverage Data For Fraud Prevention

Fraud in retail onboarding is not limited to falsified identities. It can include inflated financial credentials, fake supplier references, or undisclosed litigations. Using multi-source data triangulation—cross-checking details across government databases, credit bureaus, and proprietary datasets—enhances detection accuracy.

A study by the National Retail Federation found that over 14% of retail shrinkage in 2024 was linked to supplier or contractor fraud, highlighting the importance of thorough pre-engagement vetting.

Train Internal Teams For Consistency

Technology accelerates onboarding, but human oversight ensures judgement calls are sound. Training internal compliance, procurement, and franchise management teams on the latest regulatory requirements, fraud typologies, and onboarding platforms helps maintain consistency in decision-making. Regular audits of onboarding files also prevent process drift over time.

AuthBridge’s Retail Onboarding Solutions

At AuthBridge, we understand that retail onboarding is not a single, uniform activity—it is a complex, multi-stakeholder process that demands speed, precision, and compliance. Our solutions are designed to serve every segment of the retail value chain, from franchise partners to suppliers, contractors, and end customers. By combining AI-powered verification, API integrations, and PAN-India field capabilities, we ensure that retailers can scale confidently without compromising on trust.

1. Franchisee Onboarding And Due Diligence

We conduct comprehensive verification of potential franchise partners, covering:

  • Identity and business registration checks

  • Financial stability and creditworthiness

  • Litigation and criminal record searches

  • Operational and compliance audits

This safeguards brand reputation and ensures that every franchisee meets operational and ethical standards from day one.

2. Supplier And Contractor Verification

Our supplier and contractor onboarding solutions include:

  • GST, PAN, and corporate registration validation

  • Sanctions and watchlist screening

  • Site inspections and field verification for physical assets

  • Contract compliance and safety certification checks

These processes reduce risks related to counterfeit goods, supply chain disruption, and non-compliance with labour and safety laws.

3. Customer Onboarding (B2B / B2C)

For loyalty programmes, BNPL schemes, or B2B retail clients, we offer:

This ensures faster conversions, reduced fraud, and full adherence to data privacy regulations.

4. Continuous Monitoring And Reverification

Our technology enables ongoing compliance monitoring, so any changes in stakeholder risk profile—such as legal disputes, sanctions, or changes in beneficial ownership—are flagged immediately. This helps retailers maintain operational integrity over the long term.

Conclusion: Onboarding As A Strategic Retail Lever

In the competitive retail landscape of 2025, onboarding is no longer a back-office administrative function—it is a strategic enabler of growth, compliance, and brand reputation. Whether it is a franchisee representing your brand, a supplier delivering critical goods, or a customer joining your loyalty programme, the quality of your onboarding process sets the tone for the entire business relationship.

By adopting a risk-based framework, embracing AI-led automation, and ensuring continuous monitoring, retailers can reduce onboarding timeframes, lower operational risks, and strengthen compliance without eroding the user experience. The result is a healthier partner ecosystem, improved conversion rates, and a more resilient brand.

Forward-looking retailers are already turning onboarding into a competitive differentiator—those who invest in it today will be the ones to scale faster, operate safer, and build deeper trust in the years ahead.

References

1. National Retail Federation

2. Business Insider

By Siddharth, ago

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