India's cross-border payment infrastructure just got a major vote of confidence from two of the world's biggest payment players. Xflow, a startup tackling the notoriously complex world of B2B international transactions, has closed a $16.6 million funding round with backing from Stripe and PayPal Ventures, valuing the company at $85 million post-money. The strategic investment signals growing interest in fixing the broken pipes that move money between businesses across borders.
Stripe and PayPal Ventures don't usually back the same horse, but India's Xflow just pulled off that rare feat. The cross-border payments startup has locked down $16.6 million in fresh funding at an $85 million post-money valuation, with both payment processing giants joining the round, according to an exclusive TechCrunch report.
The strategic backing from two companies that have built empires moving money across the internet underscores just how broken cross-border B2B payments remain. While consumers can tap their phones to split dinner bills internationally, businesses still wrestle with wire transfers, correspondent banking networks, and settlement times measured in days, not seconds.
Xflow is betting it can change that equation. The startup has built infrastructure designed specifically for B2B transactions that cross international borders, a market that McKinsey estimates processes roughly $156 trillion annually but remains stubbornly resistant to modernization. Traditional payment rails weren't built for the complexity of business transactions, which often involve multiple currencies, compliance requirements, and reconciliation nightmares that consumer payments never face.
The participation of Stripe and PayPal Ventures is particularly telling. These aren't passive financial investors - they're strategic players who understand payment infrastructure at a molecular level. Their involvement suggests Xflow has cracked something meaningful in the cross-border puzzle, whether that's regulatory navigation, foreign exchange optimization, or settlement speed.
India has emerged as an unlikely hotbed for payments innovation over the past five years. The country's Unified Payments Interface has processed over 100 billion transactions since launch, creating a generation of founders who've seen firsthand how digital infrastructure can transform money movement. That domestic success is now radiating outward as Indian fintech companies tackle global payment challenges.
