Xflow, a Bengaluru-based B2B cross-border payments platform, has raised $16.6 million in Series A funding at an $85 million post-money valuation. The round was led by General Catalyst, with participation from existing investors Square Peg, Stripe, Lightspeed Venture Partners, and Moore Capital, as well as new investor PayPal Ventures. The all-equity financing brings Xflow’s total funding raised to more than $32 million since its founding five years ago.
General Catalyst led the round, marking its first investment in an Indian cross-border payments company. Alex Tran, Managing Director at General Catalyst, said: “At General Catalyst, we believe the next wave of global fintech infrastructure will be built in India—and Xflow is one of the companies leading that charge. Their growth, product velocity, and deep focus on execution set them apart in a complex category.”
The capital raise is set to capitalize on what co-founder and CEO Anand Balaji described as a breakout year last year, during which the company achieved 10× growth, expanded its product suite, and scaled its customer base to nearly 15,000 businesses. These clients span SaaS companies, global capability centers (GCCs), IT services exporters, goods exporters, freelancers, and fintech platforms. Xflow also provides its international payments infrastructure to prominent Indian fintechs such as Drip Capital and Easebuzz.
“This Series A is a vote of confidence in the Xflow team’s abilities to innovate and deliver on behalf of our customers. With final PA-CB (payment aggregator-cross border) authorisation for both exports and imports, we are uniquely positioned to power cross-border commerce in and out of India at scale,” Balaji commented on the matter.
This development comes soon after the company had recently secured final Payment Aggregator–Cross Border (PA-CB) licences from the Reserve Bank of India (RBI) for both PA-CB-Export and PA-CB-Import. The export licence strengthens its existing outbound product suite for Indian businesses receiving international payments, while the import licence opens a new segment serving overseas merchants and payment aggregators that need to send funds into the country. According to reports, last year, the firm had enabled Indian businesses to collect payments from more than 100 countries across 25 currencies. It processed close to $1 billion in annualized cross-border payment volume—a roughly 10× increase from the prior year.
Founded in 2021 by former Stripe India executives Balaji, Ashwin Bhatnagar, and Abhijit Chandrasekaran, Xflow offers APIs that allow platforms, exporters, and fintech startupss to embed cross-border collections, FX management, settlements, and compliance into their own products. The startup has deliberately avoided building another direct-to-consumer app like Wise or Payoneer, instead aiming to “power the next thousand Wises.” This comes at a time when cross-border B2B payments in India remain dominated by banks, and according to a recent study, the market itself is slated to reach $47.8 trillion by 2032, and has been growing rapidly in recent months. Fintech challengers include Wise (formerly TransferWise), Payoneer, Skydo, and others at the lower end of the market, while banks still handle the majority of high-value transactions.
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