Cashfree, an Indian payments processing startup handling over $80 billion annually, has raised $53 million in a Series C funding round led by Krafton, the creator of popular games like PUBG and BGMI. Existing investor Apis Growth Fund also participated. This investment values Cashfree at $700 million, according to sources.
This unusual partnership between a gaming company and a payments platform holds strategic value for both. Krafton recognizes the significant market opportunity in the digital content space, particularly for seamless payment flows within smaller transactions, which aligns with Cashfree’s expertise. For Krafton, Cashfree provides a reliable payments partner for its own operations in India, as well as its growing portfolio of Indian startups. Discussions are underway to process payments for games like BGMI, with a partnership expected soon. Krafton sees the potential for Cashfree’s success in India to be replicated globally.
Cashfree, serving over 800,000 businesses, including major players like Swiggy, Zepto, and Bajaj Finance, offers a wide array of payment solutions supporting over 100 payment options. The company has experienced a 130% surge in merchant sign-ups this fiscal year and is actively expanding into the UAE and other Middle Eastern markets.
Cashfree’s founders, Akash Sinha and Reeju Datta, entered the payments business somewhat accidentally, initially focusing on helping restaurant delivery workers collect cash. The demand for online payment options from their restaurant clients led them to recognize a larger opportunity. Despite initial skepticism from investors, Y Combinator’s acceptance propelled Cashfree’s growth.
Recently, Cashfree secured licenses for cross-border transactions and has onboarded international clients. Their technology can handle up to 12,000 transactions per second, and their SecureID system has processed over a billion identity verifications, aiding businesses in fraud prevention and customer onboarding.
Cashfree is among the first companies authorized by the Reserve Bank of India to operate as a payment aggregator for both domestic and international transactions. The PayPal-incubated startup has received backing from Y Combinator and State Bank of India.
This investment reflects Krafton’s broader strategy in India, where it has invested nearly $200 million across various startups. The partnership with Cashfree strengthens Krafton’s position in the rapidly growing Indian fintech market.