Xflow, a fintech startup based in India, has recently secured funding of $16.6 million in a round backed by both Stripe and PayPal Ventures. This investment is crucial for Xflow as it aims to establish a strong presence in the cross-border B2B payments market, which is currently dominated by traditional banks and manual processes.
The Series A funding round, led by General Catalyst, saw participation from existing investors such as Square Peg, Stripe, Lightspeed, and Moore Capital, with PayPal Ventures joining as a new supporter. This all-equity round has valued Xflow at $85 million post-investment, bringing its total funding to over $32 million.
Despite the rapid digitization of domestic payments in India, cross-border B2B transfers for Indian exporters still heavily rely on banks, leading to limited transparency in fees, settlement timelines, and the final amount received in rupees. This challenge is particularly significant for larger exporters moving substantial amounts of money into India for various purposes. This gap in the market has created an opportunity for fintech infrastructure providers like Xflow to offer greater transparency and efficiency in international money transfers.
Founded in 2021, Xflow offers cross-border payment infrastructure for businesses across various sectors, including exporters, SaaS firms, platforms, and freelancers. The platform enables these businesses to collect international payments, manage foreign exchange, and settle funds in India.
Co-founder Anand Balaji, along with former Stripe colleagues Ashwin Bhatnagar and Abhijit Chandrasekaran, established Xflow with a vision to revolutionize cross-border B2B payments. Balaji, drawing from his experience at Stripe, emphasized the need for modernization in this space, highlighting the disparity compared to India’s instant domestic payments network, the Unified Payments Interface (UPI).
In the past year, Xflow has facilitated international payments for Indian businesses across more than 100 countries and in over 25 currencies. The platform processed close to $1 billion in annualized cross-border payment volume, reflecting a significant growth rate compared to previous years.
Xflow’s customer base has expanded to include approximately 15,000 businesses, ranging from SaaS firms to global capability centers and freelancers. Transaction sizes vary across segments, with global capability centers averaging $1 million to $2 million per transaction, goods exporters around $30,000 to $40,000, and freelancers approximately $3,000.
The startup differentiates itself by positioning as a payments infrastructure provider rather than a direct payments application, offering APIs that allow platforms and exporters to integrate cross-border money movement seamlessly into their products. Balaji emphasized the goal of empowering multiple businesses by providing robust infrastructure.
Xflow has also introduced an AI-based foreign exchange tool to assist finance teams in optimizing currency conversions. This tool allows businesses to set target conversion rates, similar to limit orders in trading, enhancing the efficiency of foreign exchange decisions.
Looking ahead, Xflow plans to utilize the new capital to develop additional products on top of its core payments infrastructure and obtain regulatory licenses in new markets. The startup is preparing to introduce import capabilities and is pursuing licenses in markets like Singapore, while maintaining a primary focus on India. Xflow has already secured a Payment Aggregator–Cross Border (PA-CB) license from the Reserve Bank of India, enabling it to facilitate both exports and imports.
The support from Stripe and PayPal Ventures has bolstered Xflow’s credibility with banking and regulatory partners, enhancing its position in the market. With a growing team of approximately 65 employees, Xflow is poised to scale its cross-border infrastructure business and drive innovation in the global payments landscape.
