Cashfree Payments provides digital payment, payouts, and identity verification infrastructure for businesses across India.
From solving cash-on-delivery challenges to processing billions in transactions, explore the founder story and growth journey of Cashfree Payments.
Written by TFN Research Desk | covering startups, technology, venture capital, and business strategy.
Quick Facts
| Founders | Akash Sinha, Reeju Datta |
| Education | Akash Sinha – IIIT Hyderabad; Reeju Datta – IIT Kharagpur |
| Prior Ventures | Akash Sinha – Software Engineer at Amazon and BankBazaar |
| Role | Co-Founder and CEO, Cashfree Payments |
| Founded | 2015 |
| Sector | Payments Infrastructure |
Introduction
Ten years ago, Akash Sinha and Reeju Datta were simply trying to fix a problem in their own backyard: automating cash-on-delivery payments for e-commerce sellers in Bengaluru. That small idea has since scaled into one of India’s largest payment infrastructure companies. In 2025, as Cashfree turned ten, it had grown into a platform enabling more than a million merchants to move money seamlessly across gateways, payouts, and identity verification. (BusinessToday)
The Cashfree Story
Before founding Cashfree, Akash Sinha worked as a software engineer at Amazon and BankBazaar, where he built a close understanding of how payments and lending products worked at scale. (Forbes India) Meanwhile, Reeju Datta, an IIT Kharagpur graduate, brought complementary strengths in strategy and growth to the partnership. (foundlanes)
In September 2015, the duo launched Cashfree with a plan to digitise cash-on-delivery collections, a workflow that was still heavily manual across Indian e-commerce. (18startup) However, the model proved difficult to scale beyond a few hundred offline stores, so by April 2016 the founders pivoted entirely toward becoming an online payment gateway. (StartupTalky)
That pivot paid off. Incubated by PayPal and later backed by Y Combinator, Cashfree steadily built out a fuller product suite, adding payouts, bank account verification, and split payments for marketplaces. (18startup) As a result, the company grew to process billions of dollars annually, eventually crossing $80 billion in yearly transaction volume across more than a million merchants. (Moneymint)
Business Model
Cashfree earns primarily through transaction-based commissions rather than subscription fees:
| Revenue Stream | How It Works |
|---|---|
| Payment gateway commissions | Fees on transactions processed for merchants; ~75% of FY25 operating revenue |
| Payout commissions | Fees on bulk disbursals, vendor payments, and refunds |
| Other commission income | KYC, SecureID identity verification, and cross-border payment services |
(Sourced from Entrackr)
Funding History
| Round | Year | Amount | Key Investors |
|---|---|---|---|
| Series A | 2019 | Undisclosed | Apis Partners |
| Series B | Nov 2020–Jun 2021 | $35 million | Apis Growth Fund II, Y Combinator, State Bank of India |
| Series C | Feb 2025 | $53 million | KRAFTON (lead), Apis Growth Fund II |
(Sourced from TechCrunch and FinTech Futures)
Overall, Cashfree has raised close to $100 million to date, reaching a valuation of roughly $700 million following its 2025 round led by KRAFTON. (TechCrunch)
Revenue and Growth
| Metric | FY24 | FY25 |
|---|---|---|
| Operating Revenue | ₹642.7 crore | ₹640 crore (down 0.4%) |
| Net Loss | ₹135 crore | ₹154 crore (up 14%) |
(Sourced from Entrackr)
Notably, this flattish revenue phase followed a year-long RBI restriction on onboarding new merchants, which slowed growth through much of FY24. (The Arc)
Cashfree vs Competitors
Cashfree competes directly with Razorpay, PayU, and CCAvenue in India’s payment gateway market, along with global players like Stripe. (Tracxn) Compared to peers, Cashfree has leaned more heavily on payouts and identity verification as differentiators, rather than competing purely on gateway pricing.
Key Takeaways
- Akash Sinha and Reeju Datta founded Cashfree in 2015 after identifying gaps in cash-on-delivery payments.
- The company pivoted from offline COD digitisation to a full online payment gateway by 2016.
- Cashfree has raised close to $100 million and was valued at roughly $700 million after its 2025 KRAFTON-led round.
- FY25 revenue held nearly flat at ₹640 crore, while losses widened 14% to ₹154 crore.
- The company competes with Razorpay, PayU, and CCAvenue in India’s payments infrastructure space.
FAQs
Who founded Cashfree Payments?
Akash Sinha and Reeju Datta founded Cashfree in September 2015.
What does Cashfree do?
It provides payment gateway, payout, and identity verification infrastructure for businesses.
How much funding has Cashfree raised?
Close to $100 million, reaching a valuation of about $700 million in 2025.
Who are Cashfree’s competitors?
Razorpay, PayU, CCAvenue, and Stripe in India’s payments infrastructure market.
© The Founder Nation | Written by TFN Research Desk
