Xflow Secures $16.6M Backed by Stripe and PayPal for India Payments Infrastructure

Xflow, a Bengaluru-based fintech startup, has successfully raised $16.6 million in a Series A funding round led by General Catalyst. The financing marks a historic milestone as Xflow becomes the first Indian fintech to receive backing from both global payment giants Stripe and PayPal Ventures. This capital injection brings the company's total funding to over $32 million as it seeks to simplify how international businesses collect money from the Indian market. Alongside the funding news, Xflow announced it has secured final Payment Aggregator Cross Border (PA-CB) authorization from the Reserve Bank of India. This license allows the firm to handle both import and export transactions legally within the country's complex regulatory framework. With this status, Xflow can now scale its infrastructure to support global merchants looking to tap into India's digital economy through their official platform.

The company specializes in an India Collections Stack that provides powerful APIs for global payment aggregators. This technology enables international platforms to offer local Indian payment methods like UPI and NEFT to their merchants without requiring a domestic entity. By bridging these domestic rails with international systems, Xflow removes the friction typically associated with Indian capital controls and banking regulations.

Xflow's solution supports high-volume retail payments through UPI and larger B2B transactions via NEFT and IMPS. The platform automates regulatory reporting and handles currency conversion into major global currencies such as USD, EUR, and GBP. This allows overseas merchants to invoice in Indian Rupees while receiving funds in their preferred local currency with full transparency.

During a breakout 2025, Xflow reported tenfold growth and served over 15,000 users across various sectors including SaaS and freelance exporters. The new funds will be used to expand into new geographic markets and deepen AI-driven capabilities for cross-border finance. The team remains focused on providing a transparent, compliant, and white-labeled experience for global financial platforms.