Krafton Leads $53M Funding in Cashfree, Valuing the Indian Payments Firm at $700M

Indian payments startup Cashfree, which processes over $80 billion annually for its customers, has secured $53 million in a Series C funding round. Krafton, known for popular games like PUBG and BGMI, led the round alongside Apis Growth Fund, marking an unusual yet strategic partnership between a gaming giant and a fintech firm. The new funding brings Cashfree’s valuation to $700 million, with the company having raised nearly $100 million to date.

Cashfree’s co-founder and CEO Akash Sinha emphasized the synergy between the digital content landscape and payment providers. The partnership is expected to enable seamless payment flows, especially for small transaction sizes. Discussions are ongoing about incorporating Cashfree’s payment solutions within Krafton’s gaming ecosystem in India, potentially integrating services for games like BGMI.

Sean Hyunil Sohn, CEO of Krafton India, highlighted India’s fintech growth, expressing confidence in Cashfree’s ability to replicate its domestic success on a global scale. The Bengaluru-based startup already serves major clients, including Swiggy, Zepto, and Bajaj Finance, with offerings ranging from payment gateway services to features like PayToPhone for mobile-based transfers and RiskShield for fraud prevention.

Cashfree is aggressively expanding its footprint in the Middle East and North Africa (MENA) region, targeting six key markets: UAE, Saudi Arabia, Egypt, Jordan, Kuwait, and another smaller market. The firm aims to position itself as a leader, leveraging its expertise as MENA countries develop domestic payment networks similar to India’s UPI and RuPay.

Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree originally focused on helping delivery workers collect cash payments before pivoting to digital solutions. Early skepticism from investors was overturned when the startup gained acceptance into Y Combinator, marking a turning point in its journey. Since then, it has secured licenses for cross-border transactions and expanded internationally.

Cashfree’s technology stack supports high transaction volumes, handling up to 12,000 transactions per second during peak periods. Its identity verification tool, SecureID, has performed over a billion verifications, playing a vital role in fraud prevention and customer onboarding. The startup was also among the first to receive authorization from India’s central bank to operate as a payment aggregator for both domestic and international transactions.

Krafton’s investment in Cashfree is part of its broader strategy in India, where the gaming firm has committed nearly $200 million to various startups, signaling its long-term interest in the region’s tech ecosystem.