Stripe and PayPal Ventures have joined a $16.6 million all-equity Series A funding round for Bengaluru-based fintech Xflow.
The round, led by General Catalyst, values the 2021-founded startup at $85 million post-money and brings its total funding to over $32 million.
Solving Cross-Border B2B Payment Friction
India's cross-border B2B payments have lagged behind domestic innovations like UPI, relying on opaque bank processes with hidden fees and delays.
Xflow, founded by former Stripe executives Anand Balaji, Ashwin Bhatnagar, and Abhijit Chandrasekaran, addresses this by offering API-driven infrastructure for seamless international collections.
Innovative Features Driving Adoption
Businesses can collect payments from over 100 countries in 25 currencies, manage foreign exchange with an AI tool featuring limit orders and three-day forecasts at 92% accuracy, and settle quickly in rupees.
Unlike consumer-focused apps, Xflow acts as embeddable infrastructure to empower platforms like SaaS firms and exporters handling high-value transactions.
Explosive Growth and Real Impact
Last year, Xflow processed nearly $1 billion in annualized volume, marking 10-fold growth from 2024, serving 15,000 customers including IT exporters and freelancers.
This traction underscores the massive demand for efficient tools amid India's booming exports and global capability centers.
Future Roadmap and Strategic Backing
With fresh capital, Xflow plans to launch import capabilities, secure RBI's PA-CB license, and expand to markets like Canada and Singapore.
Investor confidence from Stripe and PayPal Ventures bolsters regulatory partnerships, positioning Xflow to power the next wave of global fintechs.
Historically, India's payment evolution from cards to UPI sets the stage for Xflow to lead cross-border digitization, potentially unlocking billions in efficiency gains.
Andrew Lee
