Digital payment firm Cashfree has reportedly announced that SBI (the State Bank of India) has invested an undisclosed sum in the fintech company. The move comes as the largest lender of India looks for the promotion of digital payments.
According to Cashfree’s Co-founder and Chief Executive, Akash Sinha, the company is thrilled about its collaboration with the country’s leading and trusted lender SBI. The investment from the largest bank in India demonstrates its trust in Cashfree’s innovation and the manner in which it is rapidly escalating the payments business.
The investment perfectly fits with the growth strategy of the company as it continues to focus on product innovation and customer experience, added Sinha.
Back in April 2019, the payment gateway had secured a sum of $5.5 million in its Series A financing round, which was led by Smilegate Investment, a South Korean venture capital company. The move was intended at the expansion of Cashfree’s team and the distribution of its API banking platform.
As per sources, Cashfree is backed by payments pioneer PayPal and reportedly counts logistics firm Delhivery, food delivery startup Zomato, cosmetics firm Nykaa, and credit card payment platform CRED, among other companies as its customers.
Furthermore, in November 2020, the Bengaluru-headquartered firm had also secured a sum of $35 million in a Series B funding round that was led by Apis Growth Fund II. The fund is managed by Apis Partners LLP which is known for making private equity investments across infrastructure businesses and growth-stage financial services.
Other participants in the funding round comprised Y Combinator, the existing investor of the company. The capital was utilized for supporting the growth plans of the company comprising the development and roll-out of new products.
Established in 2015 by Reeju Datta and Akash Sinha, Cashfree operates lines of enterprises comprising Payouts and a payments gateway. Payouts is a bulk disbursal solution that enables businesses to instantly send money to cards, bank accounts, as well as UPI accounts.