Indian payments startup Cashfree has announced a significant milestone, securing $53 million in a Series C funding round led by Krafton, the creator of popular games like PUBG and BGMI. This funding round, which also saw participation from existing investor Apis Growth Fund, values the nine-year-old startup at an impressive $700 million. The investment comes as Cashfree continues to expand its footprint in the financial technology sector, aiming to bolster its presence in new markets.
Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree began with a simple mission: to assist Bangalore restaurant delivery workers in collecting cash from customers. Over the years, it has evolved into a robust technology stack capable of processing up to 12,000 transactions per second during peak demand. Today, Cashfree facilitates and processes more than $80 billion annually for its over 800,000 business clients, which include well-known companies such as Swiggy, Zepto, and Bajaj Finance.
Cashfree's journey into the payments industry was somewhat serendipitous. The founders stumbled into the space by accident but quickly recognized the potential for growth. Their innovative approach and commitment to efficiency have made Cashfree one of the first companies authorized by India's central bank to operate as a payment aggregator for both domestic and international transactions.
Having been incubated by PayPal and backed by prominent investors like Y Combinator and State Bank of India, Cashfree has seen tremendous growth. The startup was accepted into Y Combinator's program under unique circumstances, despite missing application deadlines and facing challenges in attending the batch on time. This resilience has translated into a 130% surge in merchant sign-ups in the current fiscal year.
With its recent funding, Cashfree is particularly focused on expanding its operations in the UAE and other Middle Eastern markets. This strategic move aligns with the company's vision to capitalize on growing demand for efficient payment solutions across diverse geographies. Nihansh Bhat, corporate development lead at Krafton, expressed confidence in Cashfree's potential to make a significant impact in these regions.
"This is one of the areas where we can potentially help," – Nihansh Bhat, corporate development lead at Krafton.
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