Following the recent funding round, Xflow has secured USD 16.6 million in Series A financing led by General Catalyst and supported by existing investors such as Square Peg, Stripe, Lightspeed, and Moore Capital. PayPal Ventures also participated, bringing Xflow’s total capital raised to over USD 32 million.
With the full PA-CB authorisation from Indian regulators for both exports and imports, India-based B2B cross-border payments platform Xflow has further cemented its position in the market. This dual authorisation is a significant achievement, positioning it as one of few fintech companies to offer comprehensive cross-border payment solutions.
Xflow’s service targets various business types including SaaS firms, global capability centres (GCCs), IT services exporters, and goods exporters. It also provides cross-border payments infrastructure for other fintech players such as Drip Capital and Easebuzz.
Regulatory Context and Market Positioning
The PA-CB framework managed by the Reserve Bank of India oversees entities that facilitate international payment flows for Indian businesses. Receiving approval for both import and export functions is a key milestone, enabling Xflow to handle inbound payments from overseas merchants alongside its existing export-focused services.
With support from both Stripe and PayPal Ventures, the Series A funds will be used to aid geographic expansion and product development. Xflow currently employs over 60 professionals across regulatory, risk management, partnership, and product roles.
Investor and Strategic Rationale
General Catalyst’s involvement highlights ongoing institutional interest in Indian fintech infrastructure sectors. The firm views India as a crucial market for the next era of global payments infrastructure, emphasising Xflow’s growth potential and execution strategies as standout attributes.
The funding comes at an opportune time to drive Xflow’s 2025 expansion plans, enabling it to explore new markets. The dual PA-CB licence now allows Xflow to tackle both sides of India’s cross-border commerce flows, a capability that was previously restricted to select regulated entities in the country.
India’s growing cross-border B2B payments sector is being driven by increasing IT services exports, international SaaS revenues from foreign clients, and rising trade volumes. The clear regulatory environment provided by the Reserve Bank of India, coupled with greater demand for swift and transparent FX settlement among Indian exporters, has created a competitive landscape, prompting several platforms to compete for both institutional and small- to medium-sized enterprise (SME) business.
