Xflow Raises $16.6 Mn to Simplify Cross-Border Payments for Indian Businesses

Bengaluru-based fintech startup Xflow has raised $16.6 million in a Series A funding round, backed by global payment leaders Stripe and PayPal Ventures. The round was led by General Catalyst, which valued the company at $85 million.

Xflow is trying to fix a problem that many Indian businesses face, which is receiving international payments. While domestic transactions in India have become seamless in connection with Unified Payments Interface (UPI), cross-border B2B payments still largely depend on banks. These transfers often come with unclear fees, unpredictable exchange rates and slow settlement timelines.

Founded in 2021 by former Stripe executives Anand Balaji, Ashwin Bhatnagar and Abhijit Chandrasekaran, Xflow builds infrastructure that helps exporters, SaaS companies, freelancers, and platforms collect payments from abroad, manage foreign exchange, and settle funds smoothly in India.

The funding announcement comes as Xflow secured final Payment Aggregator-Cross Border (PA-CB) authorisation for both exports and imports. The company said it is among a limited number of firms to receive licences for both segments.

“This Series A is a vote of confidence in the Xflow team’s abilities to innovate and deliver on behalf of our customers. With final PA-CB authorisation for both exports and imports, we are uniquely positioned to power cross-border commerce in and out of India at scale,” said Anand Balaji, co-founder, Xflow.

In 2025, Xflow enabled Indian businesses to collect payments from more than 100 countries across over 25 currencies. The company said its FX AI Analyst helped businesses earn an additional 8–10 paise per dollar on average through treasury management decisions. Users cited faster payouts, transparent pricing and compliance support as reasons for using the platform.

The company said that it processed nearly $1 billion in annualised payment volume last year, which is almost 10 times higher than the previous year. 

Today, around 15,000 businesses use Xflow, including SaaS firms, IT exporters, global capability centers and freelancers. Transaction sizes range from a few thousand dollars for freelancers to over $1 million for large multinational units operating in India.

The company also provides cross-border payments infrastructure to fintech firms such as Drip Capital and Easebuzz.

Instead of building a consumer-facing app, Xflow focuses on infrastructure. It provides APIs that enable companies and platforms to integrate cross-border payments directly into their systems. 

“The next wave of global fintech infrastructure will be built in India — and Xflow is one of the companies leading that charge. Their growth, product velocity, and deep focus on execution set them apart in a complex category,” said Alex Tran, Managing Director, General Catalyst.

The startup has also introduced an AI-based foreign exchange feature that helps finance teams decide when to convert currencies. Businesses can set target exchange rates, similar to limit orders in trading, rather than blindly accepting bank quotes.

Xflow recently secured final approval from the Reserve Bank of India for a Payment Aggregator-Cross Border license. It also holds a payments license in Canada and is exploring expansion into markets like Singapore.

The 60+member startup has decided to expand its product offerings and strengthen its position in India’s growing cross-border payments market.

The company said the PA-CB-Imports licence allows it to serve overseas merchants and payment aggregators, while the PA-CB-Exports licence strengthens its existing product offering. Xflow said the timing of the fundraise aligns with its plans to expand into new geographies.