Payments platform Cashfree today said it has received USD 120,000 in seed funding from Silicon Valley-based startup accelerator Y Combinator.
Cashfree was one of 130 startups globally selected for Y Combinator’s Summer 2017 batch and more than 7,000 applications were received this year, a statement said.
“The products we have built are first of their kind and are helping businesses scale and innovate faster. We already are a profitable business and are looking to process Rs 200 crore of monthly payments by the end of the year,” co-founder Akash Sinha said.
The startup claims to process more than Rs 50 crore of payments every month and has 1,100 merchants on its platform.
Cashfree works as a payment gateway that automates inbound and outbound bank transfers.
This replaces the slow, error prone alternative of uploading Excel files for bulk payments or manually reconciling payments received via bank transfers.
It allows marketplaces and fintech platforms to easily setup custom payment flows while ensuring full regulatory compliance.
The product is being used for automated payouts for crowd-funding, marketplace vendor settlements, payroll for on-demand economy workers, loan disbursal and repayment for lenders, modern ERP and accounting tools for invoice payments, and instant refunds via payment gateway versus 5-7 days presently.
Started in September 2015, by Akash Sinha and Reeju Datta, the startup was bootstrapped for 2 years prior to being funded by Y Combinator.