Krafton Champions Cashfree’s $53M Funding Round, Boosting Valuation to $700M
Cashfree, a leading Indian payments startup, is revolutionizing the financial landscape by processing over $80 billion annually for its clients. Recently, Cashfree successfully secured $53 million in a fresh funding round, aimed at expanding its reach into international markets.
Funding Round Led by Krafton
The Series C financing round was spearheaded by Krafton, the renowned developer behind popular games like PUBG and BGMI. This funding round also saw participation from existing investor Apis Growth Fund, bringing the total funds raised by Cashfree to nearly $100 million. This latest investment has pushed the valuation of the 9-year-old startup to $700 million, according to sources familiar with the matter.
A Unique Partnership in the Tech Space
This collaboration between a gaming company and a payments provider is quite unusual. However, both companies recognize the strategic advantages this partnership offers. In a conversation with TechCrunch, Akash Sinha, co-founder and CEO of Cashfree, explained:
- Market Opportunities: “Krafton is active in the digital content space, and payment companies like us see significant market opportunities within e-commerce, travel, and other financial services.”
- Synergies: There are potential synergies in developing seamless payment flows for smaller transactions.
Cashfree’s Expanding Services
Krafton views Cashfree as a reliable payments partner, not only for itself but also for its expanding portfolio of startups in India. While they currently do not process payments for games like BGMI, discussions for future collaborations are underway.
Growth in the Indian Fintech Sector
“India’s fintech industry is undergoing impressive growth, and we believe Cashfree’s established position can be replicated globally,” stated Sean Hyunil Sohn, CEO of Krafton India.
Cashfree’s Product Offerings
Based in Bangalore, Cashfree serves a diverse clientele including major brands like Swiggy, Zepto, and Bajaj Finance. The startup provides various products, such as:
- Payment gateway services
- Automated payouts
- Innovative features like PayToPhone for mobile number-based transfers
- RiskShield for fraud prevention
Expanding Into International Markets
Beyond its stronghold in India, Cashfree is actively expanding into the Middle East, targeting key markets including:
- UAE
- Saudi Arabia
- Egypt
- Jordan
- Kuwait
Sinha emphasized, “MENA is large enough. We aim to be the leader in this market.”
Accidental Beginnings
Interestingly, Cashfree’s founders, Akash Sinha and Reeju Datta, ventured into the payments industry by chance. Initially starting in 2015 to assist Bangalore restaurant delivery workers in collecting cash, they pivoted to online payment solutions after identifying a larger market demand.
Technological Innovations and Achievements
Cashfree has recently obtained two additional licenses, including one for cross-border transactions, and has successfully onboarded several international clients. Their technology stack is capable of handling up to 12,000 transactions per second during peak periods.
Additionally, the startup has developed SecureID, an identity verification system that has conducted over a billion verifications to enhance fraud prevention while minimizing customer drop-offs during onboarding.
Regulatory Approvals and Future Outlook
Cashfree is among the first companies authorized by India’s central bank to operate as a payment aggregator for both domestic and international transactions. With backing from notable investors like Y Combinator and State Bank of India, Cashfree is poised for significant growth.
For Krafton, this investment aligns with its overarching strategy in India, where it has invested nearly $200 million across various startups.
For more insights on the fintech landscape in India, visit Finextra.
