Bengaluru-based digital payments firm Cashfree Payments has raised $53 million in a Series C funding round led by South Korean gaming giant Krafton, with participation from existing investor Apis Partners. This investment aims to accelerate Cashfree’s product development, market expansion, and global growth initiatives.
Established in 2015, Cashfree Payments has become a significant player in India’s digital payments landscape, processing $80 billion annually for over 800,000 businesses. The company’s comprehensive platform offers over 100 payment methods, facilitating seamless transactions for businesses across various sectors.
Krafton, renowned for publishing the popular video game PUBG, has previously invested in Indian startups such as Kuku FM and Pratilipi. This marks their first foray into India’s fintech sector. Krafton’s CEO expressed confidence in Cashfree’s potential, stating that the partnership aligns with their strategy to support innovative companies with strong growth prospects.
Apis Partners, a UK-based private equity firm and an existing investor in Cashfree, also participated in this funding round. The co-founders and managing partners of Apis Partners highlighted Cashfree’s leadership in the payments sector and reiterated their commitment to supporting the company’s continued growth and success.
In the fiscal year ending March 2023, Cashfree reported a revenue of ₹614 crore, up from ₹350 crore in the previous year. However, the company’s losses widened to ₹133 crore from ₹3 crore, primarily due to increased employee benefits and payment processing costs. The firm attributed this rise in expenses to investments in research and development, product launches, and market share expansion.
The fresh capital infusion is expected to bolster Cashfree’s expansion plans, particularly into the Middle East and North Africa region. The company aims to leverage synergies with Krafton to enhance its payment offerings and design new solutions across multiple digital sectors. Additionally, Cashfree plans to focus on cross-border payment solutions and security developments to meet the evolving needs of its clients.
Cashfree’s CEO and co-founder, Akash Sinha, expressed enthusiasm about the partnership with Krafton and the continued support from Apis Partners. He emphasized that the investment would enable the company to accelerate its growth trajectory, innovate its product suite, and expand its global footprint.
The company has been proactive in aligning with regulatory requirements, having received authorization from the Reserve Bank of India as a payment aggregator. This authorization enables Cashfree to handle both domestic and cross-border transactions, reinforcing its commitment to compliance and security in payment processing.