Payment gateway startup Cashfree has raised $ 35.3 million in its Series B round led by London-based private equity fund Apis Partners’ Apis Growth Fund II. Existing investors Y combinator and Smilegate Investments also participated in the round.
Last month, Enter had exclusively reported about the Series B round of Cashfree. With this, the Bengaluru-based firm has added more than $ 41 million in institutional rounds, including the $ 5.5 million Series A financing led by Smilegate of Korea in November 2019 and the initial round of $ 120K in October. of 2017.
The company will use the fresh capital to improve the product and technology. In addition, it also seeks to develop new product verticals and make strategic investments. According to the company, its valuation has been around 200 million dollars.
The five-year startup launched by Akash Sinha and Reeju Datta processes online payments for more than 50,000 businesses large and small through more than half a dozen products including payment gateway, payments, automatic collection, UPI stack and market settlement.
The firm has implemented payment APIs for some of the major companies such as Delhivery, Bigbasket, Acko, CRED, Dream11, Dunzo, Xiaomi, HDFC, and Zomato.
Cashfree is the only Indian startup in the payment gateway space to report profitability for three consecutive fiscal years. It had posted earnings of Rs 1.4 crore and Rs 4.1 crore after tax in FY18 and FY19 respectively. The company’s unaudited finances for fiscal year 2020 also stated that it posted Rs 100 crore in revenue and Rs 19.5 crore profit after tax.
Cashfree claims to have processed more than $ 12 billion in annualized payments as of March 2020. The company competes with companies such as Razorpay, Paytm, Billdesk, CC Avenue and PayU. Last month, Razorpay, backed by Sequoia, got a $ 100 million round led by Singapore-based GIC to enter the coveted unicorn club.
