Online payments platform Cashfree is trying to scale up its business volumes to handle around five million transactions a day over the next seven to nine months as more enterprises across the country thinking digital.
Online payments platform Cashfree is trying to scale up its business volumes to handle around five million transactions a day over the next seven to nine months as more enterprises across the country thinking digital. Currently the fintech, which specialises in processing bulk online payments, processes between 1 and 1.5 million transactions a day.
Co-founder Akash Sinha told FE about the scope for operations as a payments gateway, adding customising payments processes for merchants is huge. The growth potential can be gauged from the fact that as many as 4,000-5,000 merchants are looking to go online every month.
Apart from supporting merchants, the company also works with NBFCs and micro-finance institutions, which make large number of disbursals every day. As of March, it was processing over $12 billion worth of payments annually.
Cashfree, which has just raised $35.3million from private equity fund Apis, had earlier attracted an investment of around $6-7 million from investors, including Y Combinator and Smilegate. Sinha said the funds would be used for research and development and to develop new product lines, strengthen the team as also to fund the firm’s expansions within the country and also into some emerging markets. He added the company would not require fresh funds for about 18 months.
Currently, Cashfree makes a fee of anywhere between 1.75% and 3% of the value of the transaction. The company, which counts Dunzo, Club Factory and Zomato among its clients, reported revenues of around Rs 100 crore in FY20 and a profit after tax of Rs 20 crore. To grow the business, it is looking to partner other companies such as Indiafilings, which assists companies with services such as filing income taxes, GST registration and returns as also payroll. Sinha said the company was also exploring more of these partnerships.