Y Combinator-backed Cashfree lands funding from SBI for its payment platform

Digital payments company Cashfree received an undisclosed funding amount from the State Bank of India (SBI) at a valuation of around $200m. 

With this, the public-sector lender joins a slew of investors—including Apis Partners, Smilegate and Y Combinator—at the FinTech startup’s cap table.

The fundraise comes less than a year after Cashfree raised $35.3m as part of its Series B funding round, led by growth stage financial services investor Apis Partners and Y Combinator. The company’s total funding since inception comes to $42m.

Incubated by PayPal, Cashfree is backed by Apis Partners, Smilegate and Y Combinator, the company plans to use the funding to ramp up its payment infrastructure and invest in growth.

The six-year-old startup provides full-stack payments solutions to businesses in India, allowing them to collect payments and make payouts via different digital payment instruments. Other services provided by the startup’s platform includes payment collections, vendor and wage payouts, bulk refunds, expense reimbursements, as well as loyalty and reward offerings.

It competes with the likes of Razorpay, Billdesk, CCAvenue and PayU— and specialises in payment settlement processing transactions through channels and instruments including credit card, debit card, net banking, UPI and popular wallets.

At present, Cashfree claims to power 100,000 businesses and processes transactions worth $20bn annually. Apart from its home market, the company also has businesses across eight other geographies including the US, Canada and the UAE. The company’s payments processing platform is used by businesses like Zomato, CRED, Nykaa, Delhivery, Acko and Shell for e-commerce to vendor payments and marketplace settlements.

Commenting on the round, Cashfree co-founder and chief executive officer Akash Sinha said, “We are excited about our partnership with the country’s trusted and leading lender SBI. The investment underscores Cashfree’s role towards building a payments ecosystem that enables fast and easy ways to collect payments and make payouts for growing businesses. The investment fits perfectly with our growth strategy as we continue to focus on customer experience and product innovation.”

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