Recently, Xflow, one of the largest B2B cross-border payments startups, has reported an effective Series A round. This move made the company raise $16.6 million, and this underscores the increasing need to have a more efficient, compliant, and transparent financial infrastructure in the global market.

The latest investment round was carried out by the world-renowned venture capital company General Catalyst, which means that the investors have a lot of institutional confidence in the business model and capabilities of Xflow to address the complex payment situation of modern enterprises.

Funding round and expanded capabilities

This round of funding has already increased the value of Xflow to a huge figure of $85 million, which is a major milestone for the Bengaluru-based fintech company. In addition to the lead investor, General Catalyst, the Series A round was also attended by a list of high-profile existing investors, such as Square Peg, Stripe, Lightspeed, and Moore Capital.

PayPal Ventures has become an additional strategic investor in the company, adding more depth to its cap table. This capital injection will take the total amount raised by Xflow to date to $32 million, after a prior $10.2 million pre-Series A round that was closed in May 2023. The startup will use this new capital to grow its operations and aggressively expand its presence in new geographical markets.

Besides the financial lift, Xflow has recorded key regulatory milestones that made it stand out in the competitive fintech arena. The company was given the final PA-CB (Payment Aggregator-Cross Border ) authorization for both export and import transactions.

The license to purchase PA-CB Imports is especially significant since it will enable Xflow to expand its services to foreign merchants and payment aggregators. The PA-CB Exports license will enhance its already established offering, and thus the company is to be in the lead in regard to compliance with regulations. Such permissions are critical to the delivery of a secure and dependable platform to the businesses that must navigate the intricacies of international trade and financial laws.

Infrastructure and technological innovation

Xflow was co-founded by Anand Balaji, Ashwin Bhatnagar, and Abhijit Chandrasekaran and has established itself as the key collaborator to a large number of businesses, both individual freelancers and funded startups, and large Information Technology Enabled Services (ITES) firms. The platform is aimed at increasing efficiency and high compliance in international transactions, which are usually accompanied by high expenditures and bureaucratic obstacles.

The infrastructure provided by Xflow is aimed to act as the framework of cross-border financial activities, whereby the small and medium enterprises (SMEs) and larger corporate entities can enjoy a flawless experience. Xflow also makes it easy to transfer money across borders by addressing both the technical and regulatory components of payments.

The year 2025 has been a year of explosive growth for Xflow because the company has established a large presence of its products and customers. The startup is currently serving more than 10,000 businesses and has increased its users to almost 15,000 in other fields such as Software as a Service (SaaS) companies, Global Capability Centers (GCCs), IT service exporters, and goods exporters.

In addition to direct clients, Xflow also offers critical international payment infrastructure to other large fintech participants such as Drip Capital and Easebuzz. The company provided another empowerment feature to its users by introducing FX AI Analyst, which is a tool that assists businesses in making treasury decisions driven by data and optimizes their foreign exchange results in a fluctuating market.

Conclusion

The effect of Xflow on the Indian export economy can be seen in its operation statistics, whereby Indian businesses have been able to receive payments in more than 100 countries in more than 25 different currencies. The company has already shown the scalability and strength of its platform by processing hundreds of millions of dollars of transactions.

As Xflow proceeds with its new capital, the emphasis has been on the gap between the local businesses and the global economy. Its two official PA-CB licenses and advanced technology stack put the company in a good position to become the next generation of cross-border financial services, so that international business would continue to be affordable and convenient to all involved parties.