XFlow, a financial services and infrastructure company that offers cross-border payments experience for businesses, has raised $10.2 million from Square Peg in a pre-Series A round. Moore Strategic Ventures and its existing investors like Lightspeed and General Catalyst.
Prior to this, XFlow raised $6 million in a seed funding round led by Lightspeed Ventures, Stripe, and General Catalyst.
The company will utilise the newly-infused capital to expand its product capabilities to support more currencies and local payment methods. Additionally, it will also back the growing business in this country.
Established in 2021 by Anand Balaji and Ashwin Bhatnagar, XFlow is designed to help businesses that send and receive cross-border payments in a compliant and regulatory manner. It claims to simplify the cross-border payments experience for businesses of all sizes, including freelancers, small and medium enterprises and large platform enterprises serving.
According to the company's statement, the XFlow infrastructure makes it easy to embed cross-border payments in existing platforms. This makes it the first of its kind to enable a convenient and compliant medium for cross-border transactions without limit restrictions, enabling clients to receive payments the very next business day. The product is currently being used by Indian businesses such as Inkle, iCliniq, and WeWork India for international transactions.
"XFlow offers a regulatorily compliant way to bring in money from anywhere in the world with no transaction limits. XFlow also offers seamless API infrastructure for platforms to integrate cross-border payments within their experiences. This is arguably the only product that makes it this easy to integrate global payments. Since the launch of our first product in November 2022, we have been able to support several customers - small and large. With this new round of funding, we aim to increase the number of currencies we support, expand coverage of local payment methods in various countries and support all kinds of businesses in India," said Balaji, co-founder and CEO of XFlow.
"XFlow is simplifying cross-border payments for Indian companies, enabling businesses of all sizes to expand globally by providing secure and seamless cross-border transactions. We believe the founding team’s prior experience and focus on compliance, risk, product, and engineering positions them strongly, and we are excited to continue supporting the company," said Bejul Somaia, Partner, Lightspeed.
Anand Krishna, CEO and founder of Inkle said, “XFlow has made it super simple for us to go live with Inkle’s specific cross-border payment use case (intercompany transfer pricing payments) within weeks instead of months, with just a few simple APIs. The product handled our needs, volumes and edge cases quickly, seamlessly and compliantly. Our customers were delighted with the experience.”