Bengaluru-based fintech startup Cashfree has raised $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 participation from existing investor Y Combinator.
The company will use the fresh capital to further scale Cashfree’s payments offering, develop new product verticals, and make strategic investments.
The investment comes at a time when Cashfree’s rapid growth has accelerated with rising e-commerce penetration by increasing adoption of Indian businesses and consumers. “This investment is an endorsement of Cashfree’s platform as well as our vision to empower customers and businesses with the latest payments tools,” said Akash Sinha, CEO and co-founder of Cashfree.
Founded by Akash Sinha and Reeju Datta five years back, the startup processes online payments for thousands of Indian businesses.
In early 2020, Cashfree introduced solutions such as an instant settlement offering on its payment gateway and a UPI Stack with 15 ready-to-use integrations for all business payment needs. This feature helps enterprises access funds within 15 minutes of payment capture via its payment gateway as compared to the industry standard of 2-3 business days, helping reduce the working capital gap.
Some of its customers include leading internet companies such as Cred, BigBasket, Zomato, HDFC Ergo, Zoomcar and Delhivery.