The State Bank of India (SBI) (NSE:SBIN), a multinational, public sector banking and financial services statutory body headquartered in Mumbai, Maharashtra, reports that it has made a strategic investment in Paypal-incubated digital payments Fintech Cashfree.
Launched in 2015, the Bengaluru-headquartered Fintech firm handles more than $20 billion in payment volumes yearly for over 100,000 merchant clients, which includes iCred, BigBasket, Zomato, HDFC Ergo, Ixigo, Acko, Zoomcar, and Delhivery.
Cashfree has been able to expand operations because of its bulk disbursal solution, called Payouts. The platform assists businesses with transferring funds instantly to bank accounts, cards, UPI, and wallets with a seamless integration.
In addition to serving India’s markets, Cashfree’s products are reportedly being used in eight other nations including the United Arab Emirates (UAE), Canada, and the US.
SBI’s latest investment in Cashfree has come after the company closed a $35.5 million Series B round in November 2020.
Akash Sinha, co-founder & CEO, Cashfree, stated:
“The investment from India’s largest bank shows its trust in Cashfree’s innovation and the way we are rapidly scaling up the payments business. This also underscores Cashfree’s role towards building a payments ecosystem that enables the fastest and easiest way to collect payments and make payouts for growing businesses. The investment fits perfectly with our growth strategy as we continue to focus on customer experience and product innovation.”
As covered in February of last year, Cashfree, a business payments platform, had teamed up with HDFC Bank, Kotak Bank and IndusInd Bank in order to enhance its bulk disbursal platform, Payouts.
As previously reported, Payouts is an API-based banking platform that automates how funds are transferred (in bulk) to any firm’s bank account. All transactions made via the platform are settled instantly, in real-time, and can be completed 24×7 (including bank holidays).
Sinha has noted (last year):
“Through our strategic partnerships with India leading banks, we continue to strengthen our platform and enable businesses to manage and automate bulk payments. By fortifying our network of banks, Cashfree’s disbursals in the form of refunds, vendor payments and more will become faster and easier than ever.”
Sinha confirmed in early 2020 that there has been a significant increase in online payments in India. He pointed out that in the past five years, the company has witnessed the rise of innovative Internet-based businesses that are expanding rapidly and “changing the lives of their consumers.”