New Delhi, Feb. 5 -- Cashfree Payments said Wednesday it has raised Rs 450 crore (around $53 million) in a funding round led by South Korean digital entertainment firm Krafton.

Existing investor Apis Growth Fund II, a private equity fund managed by Apis Partners, also took part in the round, Cashfree said in a statement.

The company didn't disclose its valuation in the new round but it was reported to be valued at $700 million.

Apis Partners previously invested in Cashfree in 2020 when the company raised $35 million in a Series B round.

Cashfree said it plans to use the fresh capital to accelerate its payment offering and increase market outreach. The company plans to use Krafron's expertise to innovate and create new solutions across multiple digital sectors.

Founded in 2015 by Akash Sinha and Reeju Datta, Cashfree offers full-stack payment solutions to businesses. It helps them collect payments online and make payouts. Some of its clients include Swiggy, redBus, Zepto, BigBasket, and Bajaj Finance. The company says it is also compatible with popular merchant platforms like Shopify, Wix, WordPress, WooCommerce, and WhatsApp.

"This investment will help us accelerate our key efforts across cross-border and security innovations and international expansion as we enter the next phase of our growth journey. Growing sustainably has been core to our identity and how we function at Cashfree Payments," said Sinha, who is also the chief executive officer of the company.

Cashfree claims that it saw merchant signups grow 130% in FY25 as compared to previous years and anticipates strong revenue growth on the back of increased wallet share from existing customers and continued success in cross-selling to its broad client base. It claims that it processes $80 billion annually and works with 800,000 businesses, from internet startups to public enterprises.

"As the media and entertainment sector and content consumption patterns in India continue to evolve, full-stack payment systems that specifically address the needs and requirements of the sector are crucial for enhancing user experience," said Sean Hyunil Sohn, chief executive officer of Krafton India.

Cashfree has received a payment aggregator licence from the Reserve Bank of India (RBI) to operate for both domestic and cross-border payments. It is also authorised to issue prepaid instruments by the RBI.

Published by HT Digital Content Services with permission from VC Circle.