Indian fintech firm Cashfree raises $35.3m from Apis, Y Combinator

Indian fintech startup Cashfree said it has received US$35.3 million as part of its series B funding round.

The investment was led by growth-stage financial services investor Apis Growth Fund II, with global startup accelerator Y Combinator following on, according to a statement.

Cashfree co-founders Reeju Datta and Akash Sinha / Photo credit: Cashfree

Founded in 2015, Cashfree processes online payments for thousands of Indian businesses. The startup, which graduated from Y Combinator in 2017, claims to be processing over US$12 billion in annualized payment volumes as of March 2020.

The company also claims it’s been profitable since its first year of operations. It has more than 50,000 businesses among its merchants, including companies such as Cred, BigBasket, Zomato, and Delhivery.

Cashfree said it plans to use the new funds to scale its payments offering, develop new product verticals, and make strategic investments. The company has recently introduced solutions such as an instant settlement offering on its payment gateway, which helps enterprises access funds faster.

It also plans on making small-scale acquisitions to further extend its geographic and product reach.

“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,” said Cashfree co-founder and CEO Akash Sinha.

See Also: Cashfree is making life easier for online companies in India

Cashfree had raised US$5.5 million in a series A round last year led by Korea’s Smilegate Investment. The round also included participation from Y Combinator, as well as angel investors George Osborne and Vellayan Subbiah.