Payments solution firm Cashfree on Tuesday said that it has raised $35.3 million (approximately Rs 260 crores) as part of its Series B funding led by Apis Growth Fund II for an undisclosed minority stake. Existing investor Y Combinator also participated in the funding round.
An IANS report on Tuesday said that the company aims to utilise the funds in developing innovative products and strategic acquisitions.
“With our Series B funding round of $35 million led by Apis Growth Fund II, we plan to utilise this fresh capital to further scale Cashfree’s payments solutions, developing innovative products and strategic acquisitions,” the report quoted Akash Sinha, Co-Founder and CEO of Cashfree as saying.
In another PTI report, Sinha was quoted as saying that the company has been profitable for the last three years, and experienced a four-time growth in its revenue to Rs 100 crore in FY20, and expects to continue with the same pace of growth in the topline in FY21 as well.
Sinha hinted that the funds raised will suffice the company for supporting its organic growth plans for the next 18-24 months.
Cashfree said that the investment will also assist the company in making selective bolt-on acquisitions to further augment its geographic and product reach.
“We will be investing substantially in next-gen payments as well as banking technologies for businesses to easily deploy digital payments at scale,” Sinha said.
He further noted that the natural outcome of the current initiatives will be taking the company public by coming out with an initial public offering in the long term.
The company is a 2017 alumnus of Y Combinator, the start-up incubator based in San Francisco, and has grown exponentially, processing over $12 billion annualised payment volumes as of March 2020.
One of the key growth drivers for Cashfree is its bulk disbursal solution, Payouts, that was launched in 2016 and grew quickly to 1 lakh daily transactions within a year. It helps businesses send money instantly to bank accounts, cards, UPI, and wallets with a simple integration.
Use cases for Payouts include vendor payouts, wage payouts, e-commerce refunds, insurance claims processing, loan disbursements, expense reimbursements, loyalty, and rewards payments.
Other than Payouts, it also supports payments from more than 100 payment channels including debit / credit cards, RuPay, UPI, bank transfers, wallets and various instalment options.