The payments startup, Cashfree, based in Bengaluru, raised $5.5 million, equal to Rs.38.2 crore, in a Series A funding round led by the South Korean venture capital firm, Smilegate Investments. The funding round saw participation from the existing investor, Y Combinator as well as George Osborne, ex-Chancellor of the UK exchequer and Vellayan Subbiah, ex-Managing Director of Cholamandalam Investment.
The banking technology firm will utilise the funds raised to expand the distribution team of the API banking platform from the current number of 45 to 100 members. The company has been growing at the rate of 25 per cent per month, since the past one year.
The payment gateway had raised $120K in the year 2017 with the help of the startup accelerator, Y Combinator. The funds raised in this round were used to boost the sales, improve the product, enhance the engineering teams, further market management, and build a strong network with banks. The company currently works with banks like HDFC, ICICI, Yes Bank, and Kotak.
Cashfree was started in 2015 by Akash Sinha, former employee of Amazon and BankBazaar, and Reeju Datta. In 2016, the company created a sole bulk payouts platform for businesses that operate in the country. The platform allows companies to send money instantly to accounts, cards and UPI at any time during the day.
Additionally, Cashfree can be used to carry out instant refunds, split payments, bank account verification API, and auto collect of payments from customers.
The startup tends to over 12,000 businesses at present and a few of the notable ones are Zomato, Delhivery, Cred, Xiaomi, ExxonMobil, Tencent, and Club Factory.
Source: Your Story