Payments solutions provider Cashfree Payments has raised USD 53 million (~INR 450 crore) in a Series C funding round led by South Korean digital entertainment company KRAFTON, with continued participation from Apis Growth Fund II, a private equity fund managed by Apis Partners Group (UK) Ltd.
This marks the company’s first major external funding since June 2021, bringing its total raised capital to approximately USD 95 million. The fresh investment will be used to enhance Cashfree’s payment offerings, expand its global footprint, and drive security innovations.
Investment and Growth Plans
The investment establishes a strategic partnership between KRAFTON, its portfolio firms in India, and Cashfree Payments, setting the stage for potential synergies in digital transactions. While Cashfree is not yet powering KRAFTON’s gaming operations, both companies have expressed interest in exploring future collaborations.
Akash Sinha, CEO & Co-Founder of Cashfree Payments, emphasized the company’s commitment to sustainable growth, stating:
“We are excited to welcome KRAFTON as a strategic partner with continued support from our existing investors, Apis Growth Fund II and the team at Apis Partners. Our mission at Cashfree Payments has been to empower Indian businesses with the ability to transact in the digital economy with unparalleled security and efficiency. 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.”
The nine-year-old fintech firm, founded in 2015 by Akash Sinha and Reeju Datta, has built a full-stack payment infrastructure, enabling businesses to collect payments, make payouts, verify identities, and prevent fraud.
Resurgence After RBI Ban and Market Expansion
Cashfree Payments faced a temporary ban by the Reserve Bank of India (RBI) on onboarding new merchants, which slowed its growth over the past two years. The ban was lifted in December 2023, marking a crucial turning point for the company.
Post-ban, merchant sign-ups surged by 130% in FY25, and the company now processes transactions worth USD 80 billion annually across 8,00,000 businesses.
With the fresh funding, Cashfree plans to scale its presence in the UAE and other Middle Eastern markets, focusing on product innovation and expanding its global reach.
Innovative Payment Solutions and Regulatory Approvals
Cashfree Payments has introduced multiple cutting-edge solutions to enhance digital transactions:
- Secure ID: An identity verification suite with advanced KYC components, processing over one billion verifications.
- Embedded Payments: Enables ERPs and SaaS platforms to integrate payments seamlessly.
- RiskShield: A fraud detection and risk management solution for payment gateways.
- Flow Wise: A payment orchestration platform optimizing payment workflows for businesses.
The company also holds three key regulatory approvals:
- Online Payment Aggregator License (Domestic)
- Cross-Border Payment Aggregator License
- Prepaid Payment Instrument (PPI) Authorization
Financial Performance and Market Position
In FY24, Cashfree Payments’ operating revenue increased to INR 639.3 crore, up from INR 613.6 crore in FY23. However, net losses widened slightly to INR 136 crore from INR 133.1 crore in the previous fiscal year.
Looking forward to FY25, the company aims to surpass INR 1,000 crore in revenue, with 25% of earnings expected to come from non-payment products. Cashfree anticipates robust revenue growth, driven by increased wallet share from existing clients and expansion in cross-border payments.
KRAFTON and Apis Partners’ Vision for Cashfree
KRAFTON India CEO Sean Hyunil Sohn stated:
“India’s fintech industry is experiencing remarkable growth, and we believe Cashfree Payment’s dominant position in India can be replicated globally. As the media and entertainment sector and content consumption patterns in India continue to evolve, full-stack payment systems that specifically address the needs and requirements of the sector are crucial for enhancing user experience. This investment is part of our ongoing efforts to support innovative solutions that drive growth and foster a dynamic startup ecosystem.”
Apis Partners’ Co-Founders and Managing Partners Matteo Stefanel and Udayan Goyal reinforced Cashfree Payments’ leadership in the fintech sector, recognizing its potential for global expansion and long-term sustainability.
Leadership Changes
As part of its strategy to accelerate growth, Cashfree has undergone leadership restructuring:
- Harsh Gupta, former Senior Vice President at Razorpay, has joined as Chief Revenue Officer.
- Arun Tikko, previously Chief Business Officer, now leads international business expansion.
- Anshul Lal, who managed banking and alliances, has exited the company.
Key Takeaways:
- INR 450 crore (USD 53 million) raised in Series C funding led by KRAFTON.
- Merchant signups grew 130% in FY25, processing USD 80 billion annually.
- Expanding into the UAE and Middle East markets.
- New payment solutions like Secure ID, RiskShield, and Flow Wise were introduced.
- Regulatory approvals include domestic and cross-border payment aggregator licenses.
- Projected revenue of INR 1,000 crore in FY25 with a focus on profitable growth.
Conclusion
Cashfree Payments is at a crucial point in its growth journey, leveraging the latest funding from KRAFTON and Apis Partners to expand its digital payments ecosystem, enhance security solutions, and enter new international markets. With a strong regulatory foundation, innovative products, and strategic leadership changes, the company is well-positioned to lead India’s evolving fintech landscape and make a mark on the global stage.
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