Cashfree in talks to raise $25 Mn at around $150 Mn valuation
Cashfree in talks to raise $25 Mn at around $150 Mn valuation – Payment gateway startup Cashfree is during advanced talks to boost $20-25 million in a fresh round from new and existing backers, said two persons conscious of the matter.
This would be a second investment for a payment gateway in India this year led by Singapore-based GIC and Razorpay recently scooped up a $100 million round from existing backer Sequoia Capital to enter the unicorn club.
“London-based private equity asset manager Apis Partners is one among the new investors. The contours of the deal are finalized and it might lead the round with existing investors,” said one among the sources mentioned above on the condition of anonymity.
The Y-combinator-backed startup has thus far raised around $5.6 million including $5.5 million Series A round in April 2019. aside from the Silicon Valley-based accelerator, South Korean risk capital firm Smilegate Investments had invested within the Bengaluru-based startup.
Former British minister of finance George Osborne and director of Cholamandalam Investment and Finance Vellayan Subbiah had also invested in their personal capacities. Notably, Cashfree has no Indian risk capital firm on the cap table yet.
“The Series B round will push the valuation of Cashfree to around $150 million. More new investors may contribute because the company is in talks with two more investors,” said the second source. The person also requested not be named because the matter is private.
Entrackr couldn’t independently verify the names of the 2 investors who are in talks with Cashfree. Cashfree declined to supply comment for the story. Queries sent to Apis didn’t elicit an instantaneous response.
Founded by Akash Sinha and Reeju Datta, Cashfree is that the only Indian startup during this space to post profitability for 3 consecutive fiscal years, after-tax in FY18 and FY19 respectively while the company’s had posted Rs 1.4 crore and Rs 4.1 crore profit unaudited financials claimed Rs 19.5 crore profit after tax in FY20 including payment gateway, payouts, auto collect, UPI stack and marketplace settlement as it’s unrolled payment APIs and posted Rs 1.4 crore and Rs 4.1 crore profit for a few of the highest companies and startups like Xiaomi, HDFC, Delhivery, Bigbasket, Acko, CRED, and Zomato.
With a startup valued at $1 billion or more — is additionally expected to be profitable in FY20 after Razorpay that recently turned unicorn — a consistent with the company’s last financial report, it registered 2.14X growth in operating revenue to Rs 193 crore with losses of Rs 3 crore during FY19, a 74.5% decline as compared to Rs 13 crore in FY18.
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