Xflow has raised USD 16.6 million in Series A funding led by General Catalyst and obtained full PA-CB authorisation for both exports and imports.
Following this announcement, India-based B2B cross-border payments platform Xflow has closed a USD 16.6 million Series A funding round led by General Catalyst, with participation from existing investors Square Peg, Stripe, Lightspeed, and Moore Capital. PayPal Ventures joined as a new investor in the round, bringing Xflow's total capital raised to over USD 32 million. The company has also received final PA-CB authorisation from Indian regulators for both exports and imports, making it one of a small number of fintechs to hold both licences.
The platform serves a range of business types including SaaS companies, global capability centres (GCCs), IT services exporters, and goods exporters. It also provides cross-border payments infrastructure to fintechs such as Drip Capital and Easebuzz.
Regulatory context and market positioning
According to the press release, the PA-CB (Payment Aggregator – Cross Border) framework is administered by the Reserve Bank of India and governs entities that facilitate cross-border payment flows for Indian businesses. Receiving authorisation for both the import and export legs of the licence is a meaningful regulatory milestone, as it allows Xflow to process inbound payments from overseas merchants and payment aggregators, in addition to strengthening its existing export-facing offering.
With backing from both Stripe and PayPal Ventures, the Series A proceeds are expected to support geographic expansion and product development. Xflow employs a team of over 60 professionals across regulatory, risk, partnerships, and product functions.
Investor and strategic rationale
General Catalyst's participation signals continued institutional interest in Indian fintech infrastructure plays. The firm has noted India as a key market for the next generation of global payments infrastructure, citing Xflow's growth trajectory and execution focus as differentiating factors.
The fundraise is strategically timed to follow Xflow's 2025 growth cycle and positions the company to pursue expansion into new geographies. The dual PA-CB licence now allows Xflow to address both sides of India's cross-border commerce flows — a capability that had previously been available only to a limited number of regulated entities in the country.
Cross-border B2B payments in India represent a growing segment, driven by the country's expanding IT services exports, rising SaaS revenues from international clients, and an increasing volume of goods trade. Regulatory clarity from the Reserve Bank of India, combined with growing demand from Indian exporters for faster and more transparent FX settlement, has made this segment increasingly competitive, with several platforms vying for institutional and SME business.
