PayGlocal is a cross-border payment service provider. PayGlocal is currently preparing to raise fresh funds for a new investment round. The fintech firm will raise approximately ₹36.38 crore (approximately $3.84 million) from existing investor BEENEXT. The deal will be the company’s earliest investment raise in over 4 years. It is an important milestone in its working advancement in the fintech market.

Shareholding breakdown and capital injection structure

The financing round marks a significant boost to the startup’s valuation, according to regulatory documents obtained by Entrackr. PayGlocal’s valuation will increase by 31.8% on financial estimates, reaching ₹1,140 crore (approximately $120 million). This valuation is significantly higher than its last valuation at ₹865 crore in the previous round of funding.

The Board of Directors of PayGlocal has passed a formal resolution in this regard for its own annotation. According to the regulatory filings, the company will offer 5,074 compulsory convertible preference shares (CCPS). The startup has raised ₹36.38 crore from BEENEXT through each of these compulsory convertible preference shares, at an issue price of ₹71,693.02 apiece.

The new capital is an addition to the capital raised by PayGlocal since its inception. The cross-border payment platform had raised about $17 million in total capital to-date before this latest investment round. The company earlier raised a $12 million Series B led by Tiger Global, with active participation from Sequoia Capital India and BEENEXT.

After the completion and allotment of the current funding round, the equity makeup of PayGlocal will undergo changes to the equity of external investors and the founding leadership. Peak XV Partners, earlier known as Sequoia Capital India, will retain the highest stake, comprising 34.04% of the company’s equity.

Other large external investors include BEENEXT, which will further raise its stake in the firm to 6.14%. After allotment, Tiger Global will retain an equity stake of 5.21%. The founding team holds a substantial stake in the company. In terms of equity, among the co-founders, Prachi Dharani will be an 18.92% equity stakeholder in the company, followed by Rohit Sukhija with a 14.19% equity stake and Yogesh Lokhande with 13.37%.

Business model and financial performance

PayGlocal is a specialized payment-tech service provider and a specialized solution for the Indian payment ecosystem. PayGlocal was founded by three co-founders, Prachi Dharani, Rohit Sukhija, and Yogesh Lokhande, in 2021. 

The company is responsible for offering cross-border payment infrastructure, with authorization from the Reserve Bank of India, facilitating multiple business organizations in India to manage and accept overseas payments with ease. PayGlocal’s operating revenues are derived from various payment services customized for global trade. 

PayGlocal is primarily known for its international payment gateway, multi-currency collection systems, export documentation management, automated fraud prevention tool, and efficient settlement solutions. These financial technologies are designed to address a wide base of consumers, such as exporters, Software-as-a-Service companies, Direct-to-Consumer brands, online marketplaces, and independent freelancers.

Although PayGlocal has yet to submit financial statements for FY26, the company’s financial publications for prior years illustrate significant revenue progression and decreasing operating losses. The company’s revenue from operations more than doubled in FY25 to ₹25.11 crore from ₹12.20 crore in FY24.

PayGlocal has also reduced its bottom line costs alongside growth. For FY25, the company posted a net loss of ₹14 crore, compared with a ₹15.31 crore net loss recorded in FY24. This track reflects an improving financial picture as the merchant mix and the scale of business continue to grow.

Conclusion

PayGlocal’s forthcoming capital raise of ₹36.38 crore at a $120 million valuation further highlights investor trust from current investors such as BEENEXT. The Reserve Bank of India (RBI) regulated payment processor reported reaching a valuation step-up of 31.8% after 4 years of funding gap.

As PayGlobal continues to receive prominent backing from top institutional partners like Peak XV Partners, Tiger Global, and BEENEXT, solid revenue growth in FY25 bodes well for the company’s plans to expand its cross-border capabilities for Indian businesses targeting foreign markets.