Cashfree, an India-based digital payment technology producer, has raised $35.5m in a series B round that included video game developer Smilegate.
Private equity firm Apis Partners led the round with a $35m investment through its Apis Growth Fund II, and it also featured existing investors including accelerator operator Y Combinator.
Cashfree’s platform is used by more than 50,000 merchants to process payments through mechanisms including debit cards, credit cards, online financial transfers and the mobile-based Unified Payments Interface (UPI) system.
The product is also used to pay employee salaries, issue loans and process insurance claims. Cashfree had processed over $12bn of payments volumes since being founded in 2015, as of the financial year ending March 2020.
The company will use the funding to launch new products and expand its geographic reach through acquisitions.
Smilegate Investments, the corporate venturing arm of video game developer Smilegate, led a $5.5m series A for Cashfree in April 2019 that also featured Y Combinator and angel investors George Osborne and Vellayan Subbiah, which were identified by TechCrunch as existing backers.
Cashfree raised $120,000 from Y Combinator when it took part in its accelerator in 2017. Digital payment processor PayPal chose Cashfree for its Start Tank incubator in India in 2015.