• Cashfree secures $53M Series C funding led by gaming giant Krafton, reaching a $700M valuation and processing over $80B annually.
  • The startup plans aggressive expansion in MENA markets, targeting UAE, Saudi Arabia, Egypt, and other key regions.
  • The strategic partnership between Krafton and Cashfree could lead to gaming payment solutions and wider fintech integration.

Indian fintech startup Cashfree has raised $53 million in Series C funding, led by gaming giant Krafton alongside existing investor Apis Growth Fund, valuing the company at $700 million.

The Bangalore-based payments firm, which processes over $80 billion annually, plans to use the funding to accelerate its international expansion, particularly in the Middle East and North Africa region.

The partnership between Krafton, known for hit games like PUBG and BGMI, and Cashfree represents an unexpected but strategic alliance.

While gaming companies rarely invest in payment startups, both firms see significant synergies in the collaboration, particularly in processing smaller ticket-size transactions and creating seamless payment flows.

Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree has evolved from a simple cash collection service for Bangalore's restaurant delivery workers into a comprehensive payment solutions provider.

The company now offers over 180 payment options and serves major clients including Swiggy, Zepto, and Bajaj Finance.

Cashfree's technology infrastructure is robust, capable of processing up to 12,000 transactions per second during peak demand.

The company has also developed SecureID, an identity verification system that has conducted over a billion verifications, helping businesses combat fraud while maintaining smooth customer onboarding.

The startup is aggressively targeting six major markets in the MENA region, including the UAE, Saudi Arabia, and Egypt, as these countries develop their domestic payment systems similar to India's UPI.

With two new licenses, including one for cross-border transactions, Cashfree is well-positioned for international expansion.

For Krafton, which has invested nearly $200 million across Indian startups, this investment aligns with its broader strategy in the region and could lead to future collaborations in gaming payments.

The deal also strengthens Cashfree's impressive roster of backers, which includes Y Combinator, PayPal, and the State Bank of India.

Edited By Annette George