Cross-Border Fintech Xflow Raises $16.6M
India-based cross-border payments fintech Xflow has raised a $16.6 million Series A at an $85 million valuation. The round was led by General Catalyst and notably included participation from payments giants PayPal Ventures and Stripe, signaling strong interest in next-gen B2B payment infrastructure.
Xflow's latest funding round brings its total capital raised to over $32 million, making it one of India's best-capitalized cross-border payment platforms. The company, founded in 2021 by Anand Balaji, Ashwin Bhatnagar, and Abhijit Chandrasekaran, has seen rapid growth, expanding its customer base to nearly 15,000 users. This user base includes SaaS companies, IT service exporters, and goods exporters. The fintech firm processed nearly $1 billion in annualized cross-border payment volume, a tenfold increase year-over-year. Xflow enables Indian businesses to receive payments from over 100 countries in more than 25 currencies. The company provides its international payment infrastructure to other fintechs as well, such as Drip Capital and Easebuzz. A key regulatory milestone for Xflow is securing the final Payment Aggregator–Cross Border (PA-CB) authorization for both imports and exports from the Reserve Bank of India. This dual licensing is a significant differentiator, allowing the company to facilitate a broader range of international commerce for Indian enterprises. The import license, in particular, opens up a new segment of overseas merchants and payment aggregators. Xflow aims to address the inefficiencies of traditional bank-led international transactions, which are often slow and lack transparent fee structures. The company offers an API-driven platform for more transparent and faster international payments. To further enhance its offering, Xflow has introduced an AI-based foreign exchange tool that provides predictive analysis to help businesses optimize currency conversion timing and reduce FX losses. The strategic backing from both Stripe and PayPal Ventures makes Xflow the first Indian fintech to be supported by these two global payment giants. This dual investment underscores the growing global interest in India's fintech infrastructure. General Catalyst, the lead investor, has also highlighted its belief that the next wave of global fintech infrastructure will be built in India. Xflow's focus on providing embedded cross-border finance through APIs allows other platforms to integrate international payment capabilities without building the infrastructure themselves. This infrastructure-focused approach targets a wide range of businesses, from freelancers to large enterprises, that require programmable money movement. The company plans to use the new funds to scale its operations, expand into new geographies, and further develop its product offerings.
