Fintech startup XFlow on Thursday said it has raised $10.2 million (Rs 84.3 crore) in a pre-Series A funding round led by Square Peg.
The round also saw participation from Moore Strategic Ventures and existing investors Lightspeed and General Catalyst.
The Bengaluru-based startup will use the funds for product development and market expansion within India.
Founded in 2021 by Anand Balaji and Ashwin Bhatnagar, XFlow helps simplify cross-border payments for businesses, from freelancers to small and medium enterprises (SME) to large platform enterprises. It helps businesses send and receive cross-border payments while being regulatorily compliant as well.
The company counts Indian businesses such as Inkle, iCliniq, and WeWork India as part of its client portfolio.
"XFlow offers a regulatorily compliant way to bring in money from anywhere in the world with no transaction limits. XFlow also offers API infrastructure for platforms to integrate cross-border payments within their experiences. With this new round of funding, we aim to increase the number of currencies we support and expand coverage of local payment methods in various countries," said Balaji.
Earlier, XFlow raised $6 million in a seed funding round led by Lightspeed, Stripe and General Catalyst.
"XFlow is simplifying cross-border payments for Indian companies, enabling businesses of all sizes to expand globally by providing secure cross-border transactions. The founding team’s focus on compliance, risk, product, and engineering positions them well," said Bejul Somaia, partner, Lightspeed.
Meanwhile, Lightspeed has raised over $7 billion across its early and growth-stage vehicles globally. It is currently investing in areas such as cross-border commerce, mobility, artificial intelligence-based automation and devops, climate and Web3 in addition to sectors such as consumer tech, business-to-business (B2B) commerce and enterprise.
