Cashfree Payments raises $53M from KRAFTON India for global expansion, security innovation

Digital payments startup Cashfree Payments on Wednesday said it raised $53 million (about Rs 430 crore) in a funding round led by South Korean gaming giant KRAFTON, with participation from existing investor Apis Growth Fund II.

The fintech company will use the fresh capital to drive product innovation, strengthen security infrastructure, and accelerate international expansion in the UAE and the broader Middle East markets.

This new funding marks KRAFTON's first direct investment in an Indian fintech firm.

"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," Akash Sinha, CEO and Co-founder of Cashfree Payments, said in a statement.

Since 2021, the South Korean gaming giant behind BGMI (Battlegrounds Mobile India) has actively invested in India's startup ecosystem, focusing on gaming, content creation, and tech innovation. Its first investment was in Vineeta Singh and Kaushik Mukherjee-led Sugar Cosmetics.

"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," Sean Hyunil Sohn, CEO of KRAFTON India, said in a statement.

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Besides direct investments, KRAFTON India’s investment strategy includes a fund-of-funds approach, enabling it to tap into high-potential sectors outside its core focus.

KRAFTON India has also invested in VC funds such as 3one4 Capital and Lumikai. It also runs the KRAFTON India Gaming Incubator, which aims to bolster the Indian gaming ecosystem by supporting aspiring game developers and startups.

Cashfree recently received approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator-Cross Border (PA-CB), enabling it to facilitate payments for global businesses and regulated entities collecting funds in India. The license also allows Cashfree to provide cross-border payment solutions for Indian exporters and freelancers.

The fintech startup currently processes $80 billion annually and works with 800,000 businesses, including Swiggy, redBus, Zepto, BigBasket, and Bajaj Finance.