Xflow, Indian Fintech Startup, Secures Significant Investment
In the ever-evolving world of financial technology, a significant development has been charted as Xflow, an Indian fintech startup, successfully received backing from Stripe and PayPal Ventures in a $16.6 million funding round. This round of investment is aimed at boosting Xflow’s position in the cross-border B2B payments market, which is currently dominated by banks and manual processes. TechCrunch reports that despite the rapid digitalization of domestic payments, this market still has room for innovation and improvement, especially in terms of transparency and speed.
Details of the Funding Round
The Series A funding round was spearheaded by General Catalyst and saw the participation of existing investors such as Square Peg, Stripe, Lightspeed, and Moore Capital. PayPal Ventures also joined the round as a new backer. This all-stock funding round has significantly increased the valuation of the Bengaluru-based startup to $85 million post-investment, taking its total funding to over $32 million to date.
The Need for Xflow
Despite the advancements in the digital payment landscape, cross-border B2B transfers for Indian exporters are still heavily reliant on traditional banking systems. This often comes with limited visibility into fees, settlement times, and the final amount received in rupees. Xflow, with its promise of greater transparency and speed in international money movements, is poised to fill this gap and revolutionize the sector.
About Xflow
Founded in 2021, Xflow provides cross-border payments infrastructure to a variety of businesses including exporters, SaaS businesses, platforms, and freelancers. This enables them to collect international payments, manage currencies, and settle funds in India. Last year, Xflow reported it processed nearly $1 billion in annualized cross-border payment volume, which signifies a roughly 10-fold increase from the same period in 2024.
Xflow’s Unique Position
Xflow’s unique positioning as a payment infrastructure provider, rather than a direct payment application, sets it apart from competitors. It provides APIs that allow platforms and exporters to integrate cross-border money movements into their own products. The startup also introduced an AI-powered foreign exchange tool to help finance teams optimize their currency conversions, promising additional earnings through data-driven decisions.
Future Plans and Partnerships
The new capital obtained through the funding round will be used by Xflow to build additional products on top of its core payments infrastructure and obtain regulatory licenses in new markets. Xflow is preparing to roll out import capabilities in the coming months and is looking to secure licenses in markets such as Singapore. The startup also holds a payments license in Canada but remains focused on India as its primary market. Furthermore, Xflow has received final clearance from the Reserve Bank of India for a Payments Aggregator Cross-Border (PA-CB) license, which covers both exports and imports.
Backing from Stripe and PayPal Ventures has undoubtedly boosted Xflow’s credibility with banking and regulatory partners. As the team continues to grow, this support will undoubtedly help Xflow to further cement its position in the cross-border infrastructure business.
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