Bengaluru-based fintech company Cashfree Payments has raised $53 million in a Series C funding round to drive global expansion, enhance digital payment solutions, innovate technological innovation, and scale online collections for businesses worldwide.

The round was led by South Korean digital entertainment giant Krafton alongside existing investor Apis Partners. The investment values the company at approximately $700 million, highlighting its growing influence in the payments sector.

“They (Krafton) have been active in India and investing in digital content and entertainment. We recognize them as a major player with a deep understanding of digital consumption trends. As a payments company, we see this as a large opportunity,” said Akash Sinha, CEO and Co-Founder of Cashfree Payments.

Cashfree Payments Strategic Expansion

The funding will bolster Cashfree Payments’ global expansion, strengthen its digital payment solutions, and drive technological innovation. While Cashfree is not yet powering Krafton’s games or business, both firms may explore future collaborations to enhance digital transaction capabilities.

“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. Growing sustainably has been core to our identity and functioning at Cashfree Payments. We are focused on driving profitable growth as we scale,” added Akash Sinha.

The fintech firm has bounced back after a Reserve Bank of India (RBI) embargo, which had previously restricted it from onboarding new merchants. Since the embargo was lifted in December 2023, the company has reported a 130 percent surge in merchant signups in FY25, processing $80 billion in transactions across 800,000 businesses annually.

“Our mission is clear: to create long-term value for our customers and lead innovation in the payments space, both in India and internationally,” said Sinha.

Innovations and Product Development

Cashfree Payments offers businesses a comprehensive suite of payment solutions, including online collections, payouts, fraud detection, and identity verification. Among its latest innovations:

Secure ID: A robust identity verification system that has processed over 1 billion verifications to counter fraud risks.
RiskShield: A risk management tool designed for seamless and secure payment gateways.
Flow Wise: A payment orchestration platform that enhances transaction efficiency.
Embedded Payments: A feature allowing SaaS businesses and ERPs to integrate seamless payment solutions.

With expansion plans targeting the UAE and the Middle East, Cashfree Payments aims to scale its footprint and drive product adoption in new markets.

Despite fierce competition from Razorpay, PayU, BillDesk, and CCAvenue, Cashfree has demonstrated resilience and market adaptability. In FY24, its revenue from operations grew by 4.7 percent, reaching INR 642.7 crore ($77 million), despite temporary restrictions on merchant onboarding.

Cashfree’s CEO Akash Sinha remains optimistic, forecasting an INR 1,000 crore ($120 million) revenue milestone for FY25, with 25 percent expected from non-payment products.

Investor Confidence and Future Outlook

Krafton India CEO Sean Hyunil Sohn emphasized that Cashfree Payments’ stronghold in India could be replicated in global markets. Meanwhile, Apis Partners’ Co-Founders Matteo Stefanel and Udayan Goyal reinforced confidence in the company’s leadership and innovation-driven approach.

With this latest funding round, Cashfree Payments is well-positioned to scale, innovate, and shape the future of digital transactions worldwide.

“India’s fintech industry is experiencing remarkable growth, and we believe Cashfree Payment’s dominant position in India can be replicated globally. As India’s media and entertainment sector and content consumption patterns continue to evolve, full-stack payment systems that address the sector’s needs and requirements are crucial for enhancing user experience. The investment is part of our ongoing efforts to support innovative solutions that drive growth and foster a dynamic startup ecosystem,” Sean Hyunil Sohn, CEO of Krafton India, said.

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