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Apis Growth Fund leads Series B funding in Y Combinator-backed Cashfree

Saransh Pandey

Intern
  • December 30, 2020
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    The round was led by Apis Growth Fund II, managed by Apis Partners LLP, which makes private equity investments across growth-stage financial services and infrastructure businesses.

Cashfree, the financial technology firm, which focuses on online payments by Indian businesses, has raised approximately Rs 258.87 crore at current exchange rates, in a Series B fundraising round. The round was led by Apis Growth Fund II, managed by Apis Partners LLP, which makes private equity investments across growth-stage financial services and infrastructure businesses. 

The other partners in the fund include institutional investors, developmental and multilateral financial institutions, global banks, insurance companies, sovereign wealth funds, and family offices. Portfolio companies for Apis Partners include Star Health & Allied Insurance Co Ltd and non-banking financial company Hero FinCorp. As a result of this investment in Cashfree, Apis co-founder and managing partner Udayan Goyal will join the company as a member of its board of directors. 

Other participants in this Series B round for the Cashfree Payments India Pvt Ltd-operated startup include existing investor Y Combinator. Earlier there were reports that the the company was in advanced talks to raise up to $25 million from new and existing investors. Cashfree was founded by Akash Sinha and Reeju Datta in 2015 and it operates lines of businesses including a payments gateway and Payouts, a bulk disbursal solution that helps companies instantly send money to bank accounts, cards, and UPI accounts. 

The company will use this Series B capital for supporting its growth plans including the development and launch of new products. In April last year, Cashfree raised $5.5 million (around Rs 38 crore) as part of its Series A round. That exercise was led by South Korean firm Smilegate Investment, with participation from Y Combinator, former British chancellor of the exchequer George Osborne, and former Cholamandalam Investment managing director Vellayan Subbaiah. 

Cashfree recorded net sales of Rs 27.76 crore for the 2018-19 financial year, with net profit of Rs 4.07 crore. It counts among client's firms such as Zomato, HDFC Ergo, Ixigo, Zomato, and Zoomcar. 

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