Xflow raises $16.6M to scale cross-border B2B payments

Bengaluru-based fintech startup Xflow has raised $16.6 million in an all-equity Series A funding round. The investment values the company at $85 million post-investment and brings its total funding to date to more than $32 million.

The funding round includes the following investors:

• Lead investor: General Catalyst
• New investor: PayPal Ventures
• Existing investors: Stripe, Square Peg, Lightspeed, and Moore Capital

Founded in 2021 by former Stripe employees Anand Balaji, Ashwin Bhatnagar, and Abhijit Chandrasekaran, Xflow provides cross-border payment infrastructure for businesses, including exporters, software-as-a-service (SaaS) firms, and freelancers. While domestic payments in India have digitized through UPI (Unified Payments Interface), cross-border B2B transfers remain heavily reliant on manual, bank-dominated processes. Xflow operates as an infrastructure provider rather than a direct payments application, offering APIs that allow platforms to embed international money movement into their own products. “We didn’t want to build the next Wise — we want to power the next thousand Wises,” said co-founder Anand Balaji.

Last year, Xflow enabled Indian businesses to collect payments from 100 countries, processing close to $1 billion in annualized cross-border payment volume, according to Balaji. The startup’s customer base has expanded to about 15,000 businesses, which includes global capability centers (offshore units that multinationals operate in India). To help finance teams optimize currency conversions, Xflow introduced an AI-based foreign exchange tool. The tool allows businesses to set target conversion rates, with its model currently providing a three-day forecast with about 92% confidence, according to Balaji.

Xflow has received final authorization from the Reserve Bank of India (the central bank of India) for a Payment Aggregator–Cross Border (PA-CB) license covering both exports and imports. The startup already holds a payments license in Canada and plans to use the new capital to secure regulatory licenses in new markets, including Singapore, while continuing to focus on India as its primary market. Xflow, which currently has about 65 employees, has also signed platform partnerships with Easebuzz and Drip Capital to embed its cross-border capabilities.

Why it matters

The investment helps Xflow carve out a position in the cross-border B2B payments market, which is still dominated by banks and manual processes. Additionally, backing from Stripe and PayPal Ventures strengthens the startup’s credibility with banking and regulatory partners.