Square Peg leads round for India payments start-up

Moore Strategic Ventures, Lightspeed India Partners, and General Catalyst also participated. It follows a USD 6m seed round shortly after the company’s inception in 2021 featuring General Catalyst, Lightspeed, and US-Ireland payments giant Stripe.

This is Square Peg’s second investment in an India-headquartered company, according to AVCJ Research, reflecting industry momentum to address South and Southeast Asia as a contiguous opportunity set. Last year, the VC firm's Singapore-based team backed a USD 12m round for Indian web3 gaming company Lysto.

Square Peg has proven eager to define itself beyond the borders of Australia since its beginnings. In 2014, two years after its establishment, the firm set up an Israel office. Southeast Asia operations began the following year with the recruitment of Tushar Roy, who set up the Singapore office mid-pandemic. A second Singapore-based partner, Piruze Sabuncu, formerly of Stripe, was added in 2020.

XFlow specialises in cross-border payments infrastructure that allows global businesses to transfer money into India. It claims to give hundreds of thousands of users the able to compliantly transfer up to USD 1m in a single transaction.

The first product, launched last November, is positioned as “built primarily for the developer,” giving customers options to integrate XFlow technology into existing systems or access services via a dashboard interface.

The offering is said to facilitate guaranteed next-day payments, instant foreign currency accounts, competitive and transparent foreign exchange, one-click payments, and hassle-free reconciliation.

“This is a major milestone for our rapidly growing company and gives us a boost to expand and deepen our product to simplify the cross-border payment experience for more businesses,” XFlow said in a statement.

Square Peg raised USD 550m across two vehicles last October, including its fourth flagship fund and a follow-on fund. The firm was active in financial technology earlier this month, leading a AUD 32m (USD 21.3m) investment in banking software provider Constantinople that was called Australia’s largest-ever seed round. 

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• Topics
• South Asia
• Financials
• Technology
• Early-stage
• India
• Square Peg Capital
• Lightspeed Venture Partners
• General Catalyst
• Financial Services
• Fintech