Cashfree Raises $35.3 Mn as Part of Series B Funding Round to Launch New Products
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Payments solution company Cashfree has raised USD35.3 million (about INR 260 crore) as part of its Series B funding round led by Apis Growth Fund II, growth stage financial services investor.
The funding round also saw participation from existing investor Y Combinator.
Founded in 2015 by IIIT Hyderabad graduate Akash Sinha and IIT Kharagpur alumnus Reeju Datta, Cashfree helps businesses to collect and disburse payments via all payment methods, including credit card, debit card, net banking, UPI (Unified Payment Interface) and most of the mobile wallets.
The Bengaluru-based company plans to use the fresh capital to support the company’s growth plans, including launching and rolling out new products.
“This investment is an endorsement of Cashfree's platform as well as our vision to empower customers and businesses with the latest payments tool,” said Akash Sinha, CEO and co-founder, Cashfree, commenting on the fundraise.
“Over the years, we have built a strong presence among enterprises by innovating for experience, scale and security. We still see payments as an evolving industry with its own challenges and we would be investing in next-gen payments as well as banking tech to make payments processing easier and more reliable.”
Cashfree claims to have been profitable since its first year of operations and serves over 50,000 businesses globally, including the likes of Cred, BigBasket, Zomato, HDFC Ergo, Ixigo, Acko, Zoomcar, and Delhivery, among others.
It offers bulk disbursal solution, known as Payouts, payment gateway and instant settlement services to its enterprise customers. Payouts is used by businesses for vendor payouts, wage payouts, e-commerce refunds, insurance claims processing, loan disbursements, expense reimbursements, loyalty, and rewards payments.
Udayan Goyal, Managing Partner and co-founder of Apis will join the company as a board member.
“Cashfree has maintained a leadership position in this space and is now going through a period of rapid growth fuelled by the development of unique and innovative products that serve the needs of its customers. We are delighted to support Cashfree on its exciting journey ahead and to back an exceptional management team who are at the forefront of the continued digitalisation and democratisation of payments in India,” said Goyal.
As of March 2020, Cashfree has processed over USD12 billion in annualised payment volume.