Payments platform Cashfree has received $120,000 in seed funding from Silicon Valley-based startup accelerator Y Combinator. Cashfree was one of 130 startups, from around the world, selected for Y Combinator's Summer 2017 batch. More than 7000 applications were received this year.
Started in September 2015 by Akash Sinha and Reeju Datta, the startup was bootstrapped for 2 years prior to being funded by Y Combinator.
Cashfree claims to be India's first payment gateway that automates inbound and outbound bank transfers. This replaces the slow, error prone alternative of uploading Excel files for bulk payments or manually reconciling payments received via bank transfers.
Cashfree allows marketplaces and fintech platforms to easily setup custom payment flows while ensuring full regulatory compliance. The product is being used for automated payouts for crowdfunding, marketplace vendor settlements, payroll for on-demand economy workers, loan disbursal and repayment for lenders, modern ERP and accounting tools for invoice payments, and instant refunds via payment gateway versus 5-7 days presently.
The startup claims to process more than Rs 50 Crores of payments every month and has 1100 merchants on its platform. The company is talking to investors to raise a larger round to scale its merchant acquisition and engineering teams.
“The products we have built are first of their kind and are helping businesses scale and innovate faster. We already are a profitable business and are looking to process 200 Crores of monthly payments by the end of the year,” said co-founder Akash Sinha.
“Payments innovation will play a major role in shaping the Indian economy. Cashfree has identified payment problems which existing payment companies haven't been solving. We believe they have the right team to execute it.”, said Michael Seibel, CEO and Partner, Y Combinator.