Cashfree Raises $53 Million in Funding to Expand International Presence

A Payments Startup with a Billion-Dollar Valuation

Cashfree, an Indian payments startup that facilitates and processes over $80 billion for its customers each year, has raised $53 million in a new round of funding. The funding, led by Krafton, the maker of popular gaming titles such as PUBG and BGMI, will help the startup deepen its presence in international markets.

A Strategic Partnership

The funding values Cashfree at $700 million, according to a source familiar with the terms. The unusual deal, where a gaming company invests in a payments startup, is seen as a strategic partnership by both firms. Akash Sinha, co-founder and CEO of Cashfree, stated that Krafton sees a sizable market opportunity alongside e-commerce, travel, and other financial services.

Expanding into New Markets

Cashfree has found a reliable payments partner in Krafton, which will also benefit from the startup’s growing portfolio of startups in the country. Discussions are underway to process payments for games like BGMI, and a partnership is expected soon. The startup is particularly focused on expanding in the UAE and other Middle Eastern markets, where it aims to be a leader.

A Dominant Position in India

Cashfree serves over 800,000 businesses, including prominent names such as Swiggy, Zepto, and Bajaj Finance. The startup offers a wide range of solutions and works with over 100 payment options. It has seen merchant sign-ups surge 130% in the current fiscal year.

A Strong Technology Stack

Cashfree’s technology stack allows businesses to process up to 12,000 transactions per second during peak demand. The startup has also developed SecureID, an identity verification system that has performed over a billion verifications to date, helping businesses combat fraud while reducing customer drop-offs during onboarding.

A Central Bank Authorization

Cashfree is one of the first companies to receive authorization from India’s central bank to operate as a payment aggregator for both domestic and international transactions. The startup, which was incubated by PayPal, counts Y Combinator and State Bank of India among its earlier backers.

Aligning with Krafton’s Strategy

For Krafton, the investment aligns with its broader strategy in India, where it has invested nearly $200 million across several startups. The partnership with Cashfree is seen as a key component of Krafton’s growth strategy in the country.

A Growth Story

Cashfree’s founders stumbled into the payments business by accident. In 2015, Akash Sinha and Reeju Datta started with a basic service: helping Bangalore restaurant delivery workers collect cash from customers. Neither had worked in payments before. But when their restaurant clients asked for online payment options, they spotted a bigger opportunity.

Early Investors and Milestones

Early investors weren’t convinced. Many doubted a payment processing startup could scale quickly enough to matter. Y Combinator’s acceptance changed that trajectory, even though the founders had missed application deadlines and couldn’t make it to the batch on time.

Recent Developments

The startup has recently secured two additional licenses, including one for cross-border transactions, and has gone live with several international customers. Cashfree’s technology stack and SecureID system have helped the startup achieve significant milestones, including over a billion verifications to date.

A Bright Future

With the new funding, Cashfree is poised to expand its presence in international markets and deepen its relationships with businesses in the region. The partnership with Krafton is seen as a key component of the startup’s growth strategy, and its technology stack and SecureID system are expected to play a major role in its success.