XFlow, an India-based financial services and infrastructure company, has on Thursday announced that it has raised a Pre-Series A round of $10.2 million.

The round was led by Square Peg with participation from Moore Strategic Ventures and existing investors Lightspeed and General Catalyst, XFlow said in a statement.

Previously, XFlow raised $6 million in a seed funding round led by Lightspeed, Stripe, and General Catalyst.

According to the statement, the funds raised will be deployed towards expanding the product capabilities to support more currencies and local payment methods as well as growing business in India.

With cross-border payments being integral to businesses of all scale and size, XFlow is expanding its team across key engineering, sales, marketing and operational roles and also looking at operational expansion in geographies beyond India while continuing to innovate in the cross border payments space.

“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 XFlow Co-Founder and Chief Executive Officer Anand Balaji.

According to him, the firm 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,” he said.

He said since the launch of the firm’s first product in November 2022, the firm has been able to support several customers – small and large.

Established in 2021 by Anand Balaji and Ashwin Bhatnagar, XFlow is designed to help businesses send and receive cross-border payments in a compliant and regulatory manner.

The total exports and imports from India exceed $1 trillion, while globally cross-border payments exceed $150 trillion, making it a huge yet untapped market.

XFlow simplifies the cross-border payments experience for businesses of all sizes – from freelancers to small and medium enterprises all the way to large platform enterprises serving millions of customers.

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 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.

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