Cross-border business payments in India remain outdated. While domestic transfers are quick through UPI, exporters receiving money from overseas often face slow bank wires, unclear foreign exchange rates, and little information about what ends up in their accounts.
For companies sending large sums home for payroll and operations, this uncertainty can be costly. Xflow, based in Bengaluru, aims to address this issue.
The Indian fintech startup has raised $16.6 million in a Series A round backed by some of the biggest names in global payments. According to TechCrunch, the round was led by General Catalyst, with participation from existing investors Square Peg, Stripe, Lightspeed, and Moore Capital. PayPal Ventures joined as a new investor.
The all-equity round values Xflow at $85 million post-money and takes its total funding to over $32 million.
Fund deployment
Xflow is using new funding to expand its products and improve regulatory coverage. The company plans to add import capabilities soon and is seeking additional licenses in places like Singapore, in addition to already holding a payments license in Canada.
In India, Xflow has received final approval from the Reserve Bank of India for a Payment Aggregator–Cross Border (PA-CB) license, which covers both exports and imports, strengthening its position in the market.
Additionally, Xflow has partnered with Easebuzz and Drip Capital, allowing them to integrate Xflow’s cross-border services into their platforms. This helps other fintech and commerce businesses offer international collections without having to build everything from the ground up.
Building payment solutions for businesses
Xflow was founded in 2021 by Anand Balaji, along with former Stripe colleagues Ashwin Bhatnagar and Abhijit Chandrasekaran.
The company offers payment solutions for businesses, including exporters, software firms, platforms, and freelancers, helping them receive international payments, handle currency exchange, and settle funds in India.
“Cross-border B2B payments were stuck in a different age compared to UPI,” Balaji told TechCrunch.
Today, Indian exporters, SaaS companies, global capability centres, IT services firms, freelancers, and fintech platforms use Xflow’s infrastructure to collect overseas payments, manage foreign exchange, and settle funds locally.
The company says it enabled collections from more than 100 countries across 25+ currencies last year. It has processed close to $1 billion in annualised cross-border payment volume last year, representing roughly 10x growth compared to the same period in 2024, Balaji told TechCrunch.
The company now serves around 15,000 businesses. However, the transaction size differs.
Global capability centres, which are offshore units set up by multinational firms in India, typically move $1 million to $2 million per transaction.
Goods exporters average between $30,000 and $40,000. Freelancers, at the smaller end, receive closer to $3,000 per transfer. That mix gives Xflow exposure across both mid-market and high-value flows.
Unlike consumer-facing apps, Xflow is positioning itself as infrastructure. It provides APIs that allow platforms and exporters to embed cross-border payment capabilities directly into their own products. The strategy is deliberate.
To differentiate further, Xflow has introduced an AI-driven foreign exchange tool designed for finance teams. Instead of accepting whatever rate a bank offers at the time of conversion, businesses can set target rates. Balaji compares the feature to placing a limit order in financial markets.
The company currently employs around 65 people and is scaling carefully as volumes grow. For now, India remains its primary focus, even as it builds regulatory bridges abroad.
