Mumbai, Nov 24: Fintech player Cashfree on Tuesday said it has raised USD 35 million or Rs 260 crore in a funding round led by Apis Growth Fund II for an undisclosed minority stake.
The funds will be used by the Bengaluru-based company, which offers payment collection and payout solutions to companies, will be deploying the money in payments infrastructure, new product lines and also for expanding its services into other emerging markets, its chief executive and co-founder Akash Sinha told PTI.
The five-year-old company has been profitable for the last three years, and experienced a four-time growth in its revenue to Rs 100 crore in FY20, and expects to continue with the same pace of growth in the topline in FY21 as well, Sinha said.
Apart from Apis, which gets a board seat after getting a significant minority stake in the company, existing investor ‘Y Combinator’ also participated in the round, Sinha said.
He hinted that the funds raised will suffice the company for supporting its organic growth plans for the next 18-24 months.
Sinha said the company will also be interested in acquisitions going forward, adding that some preliminary talks are already underway.
He further noted that the natural outcome of the current initiatives will be taking the company public by coming out with an initial public offering in the long term.
Sinha said the pandemic, which has seen an increase in the adoption of digital payments, has accelerated the company’s business.
In March 2020, it handled volumes similar to USD 12 billion on an annualized basis, he said, adding that the quantum is evenly split between the payment collection and payout solutions, he said.
On the payment side, it helps merchants to collect payments, while on the payouts front, it offers a bulk disbursal solution which helps companies send money instantly to designated bank accounts for aspects like vendor payouts, wage payouts, e-commerce refunds, insurance claims processing, loan disbursements, expense reimbursements, loyalty, and rewards payments. (PTI)
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