Cashfree, an Indian payments startup that processes over $80 billion in transactions annually, has raised $53 million in a Series C funding round. Led by Krafton, the gaming giant behind PUBG and BGMI, alongside existing investor Apis Growth Fund, this investment values Cashfree at $700 million. The funding will fuel the company’s international expansion, particularly in the Middle East and North Africa (MENA) region.
Krafton’s involvement in a payments startup might seem unconventional, but both companies see strategic advantages in the partnership. Krafton aims to leverage Cashfree’s expertise in seamless payment flows, particularly for smaller transaction sizes. The two firms are exploring collaborations that could include integrating Cashfree’s solutions into Krafton’s gaming ecosystem, though current partnerships do not yet include games like BGMI.
Cashfree has rapidly grown into one of India’s leading payment processors, serving over 800,000 businesses, including major names like Swiggy, Zepto, and Bajaj Finance. The startup offers a wide range of payment solutions, integrating with over 100 payment methods. Merchant sign-ups have surged by 130% this fiscal year, reflecting the growing demand for its services. The company is focusing on expanding its footprint in the UAE, Saudi Arabia, Egypt, Jordan, and Kuwait, aiming to establish itself as a leader in the MENA market.
The startup’s journey began in 2015 when co-founders Akash Sinha and Reeju Datta set out to facilitate cash collection for restaurant delivery workers in Bangalore. Spotting a greater opportunity in digital payments, they pivoted to payment processing. Despite early skepticism from investors, Cashfree gained significant traction after being accepted into Y Combinator, which helped fuel its growth.
Cashfree has since obtained key regulatory approvals, including licenses for cross-border transactions. The startup now processes up to 12,000 transactions per second and has developed SecureID, an identity verification system that has completed over a billion verifications. It was also among the first firms to receive authorization from the Reserve Bank of India to operate as a payment aggregator for both domestic and international transactions.
For Krafton, this investment is part of a broader India-focused strategy, having invested nearly $200 million in Indian startups. With Cashfree’s robust technology and growing market presence, this partnership positions both companies for further innovation in digital payments.