Cashfree Payments, an Indian payments firm, has secured $53 million (INR 450 crore) in a funding round led by KRAFTON, a South Korean digital entertainment giant, and existing investor Apis Growth Fund II. This investment will propel Cashfree’s payment services and expand its market reach. The partnership with KRAFTON is set to fuel innovation and introduce new solutions across digital sectors.
Cashfree, known for its Secure ID and transaction capabilities, serves over 800,000 merchants, including top brands like Swiggy and BigBasket. The company aims to scale its products, strengthen its international presence, and continue its focus on cross-border and security innovations as it accelerates its growth journey.
What is Cashfree Payments?
Cashfree Payments is an Indian fintech company that provides digital payment solutions for businesses. It offers a range of services, including payment gateways, payment aggregation, and solutions for handling cross-border payments, enabling merchants to accept and manage online payments efficiently.
Cashfree is famous for providing a Secure ID platform for identity verification and preventing fraud for businesses. The corporation has a customer base of more than 800,000 merchants—some of which include Dominos, Swiggy, BigBasket, and Zepto, which are popular brands. Emphasizing innovation, Cashfree seeks to simplify digital payment and the overall transaction experience. It also has a growing international presence in markets like the UAE and Saudi Arabia.
Why is this Funding Significant?
This funding is significant for several reasons:
- Expansion and Growth: The $53 million raised will help Cashfree Payments scale its payment services and enhance its market outreach, both domestically and internationally. The company aims to grow its transaction volume and customer base, including expanding its footprint in new countries like Egypt and Oman.
- Partnership with KRAFTON: The collaboration with KRAFTON, a prominent digital entertainment company known for PUBG, is a strategic move. KRAFTON’s investment signals a strong alignment between content consumption and payment systems, allowing Cashfree to develop more tailored solutions for sectors like media, entertainment, and gaming.
- Innovation and Product Development: The funding will accelerate innovations like cross-border payment solutions and security technologies (e.g., Secure ID). It also supports projects like one-click checkout, enhancing the user experience for direct-to-consumer brands.
- Long-term Vision: The investment helps Cashfree stay ahead of its competitors, such as Razorpay, by continuously innovating and expanding its product suite. This allows them to maintain a competitive edge in the rapidly growing fintech sector.
How Will the Funds Be Used?
The $53 million raised by Cashfree Payments will be utilized to accelerate key aspects of its business. A significant portion of the funds will be directed towards scaling existing products and developing new solutions, such as one-click checkout, to better serve direct-to-consumer brands.
Cashfree will also devote itself to enhancing its payment means to accommodate a growing volume of transactions and improve robustness and security. The corporation intends to capitalize on investment in providing functionalities to facilitate best-in-class cross-border payment, further developing advanced security technologies, e.g., its Secure ID platform, in order to better address fraud and further enhance KYC.
Additionally, Cashfree aims to expand its international presence in markets like the UAE, Saudi Arabia, Egypt, and Oman. The funding will also support team growth, particularly in research and development, to drive innovation and maintain a competitive edge in the rapidly evolving fintech sector.
Founders’ Perspective
The founder of Cashfree Payments, Akash Sinha, shared his excitement about the new funding and strategic partnership. In an interview, he emphasized how this investment will accelerate their efforts in cross-border and security innovations and support their international expansion.
He said, “This investment will help us accelerate our key efforts—across cross-border and security innovations and international expansion—as we enter the next phase of our growth journey. We are focused on driving profitable growth as we scale.”
Akash also highlighted the company’s mission to empower Indian businesses with digital payment solutions that offer unparalleled security and efficiency. His focus remains on sustainable growth and scaling the company while continuing to build deeper relationships with merchants.
Key Takeaways
- Strategic Partnership with KRAFTON: The collaboration with KRAFTON, a leading digital entertainment company, will help Cashfree leverage synergies in the media, entertainment, and gaming sectors, leading to more tailored payment solutions.
- Focus on Innovation and Security: Cashfree is prioritizing innovations in cross-border payments, security, and fraud prevention technologies.
- Global Expansion: The funds will help Cashfree expand its footprint beyond India, with plans to grow in markets like the UAE, Saudi Arabia, Egypt, and Oman, as well as explore new opportunities for international growth.
- Scaling Products and Infrastructure: Cashfree plans to scale its existing products, improve payment infrastructure, and develop new solutions like one-click checkout, catering to the needs of D2C brands.
Cashfree Payments: Secure, Fast, and Reliable Payment Solutions.
